NEW YORK (TheStreet) -- Outerwall (OUTR) stock is down by 12.36% to $28.65 on heavy trading volume on Friday morning, after the company provided lower-than-expected 2016 earnings guidance.

After the market close on Thursday, the operator of Redbox and Coinstar kiosks reported 2015 fourth quarter earnings of $1.43 per share, beating estimates of 64 cents per share. Revenue of $527.2 million came in above analysts' forecasts for revenue of $513.2 million. 

However, Outerwall's 2016 guidance came in below analysts' estimates. Outerwall projected full-year earnings between $5 per share and $6.30 per share, while analysts were expecting earnings of $7.15 per share for the year.

Redbox rentals dropped to 135.8 million during the fourth quarter, down from 179.5 million in the year-ago period. The decline was driven by lower demand after price increases, fewer Redbox kiosks and fewer movies available to rent during the quarter, Outerwall said in a statement. 

So far today, 2.01 million shares of Outerwall have traded, versus the company's 30-day average of about 576,000 shares.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

You can view the full analysis from the report here: OUTR

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