CoinstarShares of Coinstar ( CSTR) were getting crushed in after-hours action, plunging 25% to $42.70 on volume of 4.1 million after the Bellevue, Wash.-based operator of coin-counting machines and DVD kiosks made a deep cut to its financial outlook. "This was redbox's first holiday season with 28-day delayed titles, and we underestimated the impact that the delay would have on demand during the fourth quarter," said Paul Davis, the company's CEO, in a statement. "We also expected much better performance from Blu-ray and had purchased to a higher level of demand. While consumer visits to the kiosks remained strong, the number of movies per visit, or basket size, was lower than planned." Coinstar said it now sees earnings from continuing operations of 65 to 69 cents a share for the December quarter on revenue of $391 million. The company's previous view was for a profit of 79 to 85 cents a share in the quarter on revenue of $415 million to $440 million. For fiscal 2011, the company said it expects earnings of $2.60 to $3.10 a share on revenue of between $1.7 billion to $1.85 billion, below the current average estimate of analysts polled by Thomson Reuters for a profit of $3.34 a share on revenue of $1.88 billion. Coinstar shares more than doubled in 2010, although the stock did pull back after hitting a 52-week high of $59.43 on June 3. Expectations on Wall Street are high, however, with 12 of the 17 analysts covering the stock at strong buy (6) or buy (6) and the median 12-month price target at $68.50.
Sealy Corp.Sealy Corp. ( ZZ) was weak after the closing bell after the mattress maker edged past Wall Street's profit expectations for the fourth quarter but missed on the top line. The company said earnings from continuing operations totaled $3.5 million, or 3 cents a share, coming in a penny ahead of the average estimate of analysts polled by Thomson Reuters. Net sales, however, were $296.6 million, roughly flat with the year-ago equivalent performance, and below Wall Street's consensus estimate of $326.1 million.
The stock last changed hands at $2.82, down 5.7%, on volume of around 43,000. The shares are down about 23% over the past year, and six of the eight analysts covering the stock have hold ratings. The other two are at buy.