Hollywood Entertainment Panned

The movie rental chain lowers its earnings forecast for the second time in two months.
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Hollywood Entertainment

(HLYW)

fell sharply Tuesday after the video rental chain's revised fourth-quarter earnings guidance fell short of analysts' expectations once again.

Shares fell 71 cents, or 5%, to $13.39.

The company expects to earn approximately 36 cents a share for the quarter, versus a Thomson First Call consensus estimate of 39 cents a share.

The weak rental business has prompted the Portland, Ore.-based chain to lower earnings guidance twice in recent months. Its original forecast was 47 cents a share.

The company said same-store sales for the fourth quarter increased 12%, even though rental revenue was down during the period.

Hollywood forecast full-year earnings of about $1.40 a share, which were also below the consensus estimate of $1.42 a share.

The company will report fourth-quarter and full-year results on Jan. 29.