Movie Gallery Rolls Higher

The video rental chain surprises with solid revenue.
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Movie Gallery (MOVI) surged 13% early Tuesday after the video rental chain posted a third-quarter revenue gain.

The Dothan, Ala., company said revenue for the quarter ended Oct. 1 rose 1.8% from a year ago to $583 million, beating the $556 million Thomson Financial analyst consensus estimate. Same-store revenue fell 0.4%, with a 3% gain at Movie Gallery stores being offset by a 1.9% decline at Hollywood stores.

Movie Gallery also said it is postponing the reporting of its third quarter financial results and the filing of its quarterly report on Form 10-Q to review its lease accounting.

Shares rose 32 cents to $2.69.