NEW YORK ( TheStreet) -- Coinstar ( CSTR) shares took a hit late Thursday after the coin-counting and movie rental company said it's raising the price of standard DVD rental to $1.20 per day from $1, and gave a below-consensus earnings view for the current quarter. The stock was last quoted at $46.84, down 11.5%, on after-hours volume of more than 1.4 million. according to Nasdaq.com. Bellevue, Wash.-based Coinstar blew past Wall Street's expectations for its third-quarter results, reporting earnings from continuing operations of $37.1 million, or $1.18 a share, as revenue rose more than 22% year-over-year to $465.6 million. The average estimate of analysts polled by Thomson Reuters was for a profit of 88 cents a share in the September-ended quarter on revenue of $462.1 million. Coinstar attributed the need for the price change, which carries some risk (see Netflix ( NFLX)), mainly to higher interchange fees it's facing for debit and credit card transactions. "We remain committed to providing redbox consumers access to the latest movies at an incredible value," said Paul Davis, the company's CEO, in a statement. "This marks the first price increase for a redbox standard definition DVD rental in eight years. The change is primarily due to the increase in operating expenses, including the recent increase in debit card interchange fees as a result of the Durbin Amendment." For its fiscal fourth quarter ending in December, the company now expects earnings from continuing operations of 57 to 67 cents a share on revenue ranging from $485 million and $510 million. The current consensus view is for a profit of 77 cents a share on revenue of $482.3 million. Shares of Coinstar were up more than 15% over the past 52 weeks, but had fallen nearly 5% since the start of 2011. The stock's high for the year of $67.56 dates back to last November, while its low of $37.43 came on Aug. 9.
The company, whose brands also include Teva sandals, posted a profit of $62.5 million, or $1.59 a share, for the three months ended Sept. 30 with sales rising 49% to $414.4 million. The average estimate of analysts polled by Thomson Reuters was for a profit of $1.36 a share in the latest quarter on revenue of $387 million. After the closing bell, the stock leapt 5% to $111.50 on volume of more than 450,000, according to Nasdaq.com. "The third quarter was an exceptionally strong period of sales and earnings growth for our Company led by the UGG brand," said Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors. "We experienced higher domestic wholesale demand for the UGG brand fall line versus a year ago driven by the introduction of several new styles and new collections, including a broader assortment of men's product." UGG sales rose 47% year-over-year to $376.7 million. International sales soared 113% to $156.4 million. Shares of Deckers have risen more than 30% so far in 2011, Wall Street is very bullish with 13 of the 15 analysts covering the stock at either strong buy (8) or buy (5). The company said it expects further increases in raw material prices in 2012, and it boosted its revenue outlook for the fourth quarter while reining its earnings per share in somewhat. Deckers now expects year-over-year growth of 29% for the fourth quarter vs. a prior view of 22%, but it projects diluted earnings per share will increase 33%, down from a previous forecast of 36%.
"China's search industry is still in its early stages, and as the clear industry leader we see enormous room for continuing growth as users and online marketing customers become increasingly sophisticated," said Robin Li, the company's chairman and CEO. Baidu also held down traffic acquisition cost, which totaled 8% of revenue, down from 8.9% in the same period a year earlier, and flat on a sequential basis. The company said it sees fourth-quarter revenue growing to between $691.4 million and $711 million. The stock shot up $10.41 to $148.80 in after-hours action with volume exceeding 1.8 million. Other stocks making news late Thursday included Advanced Micro Devices ( AMD), gaining 5% after the no. 2 semiconductor maker rode strong mobile chip demand to a better than expected third-quarter profit; Hewlett-Packard ( HPQ), which edged up less than 1% after the Dow component said it plans to keep its PC division; Las Vegas Sands ( LVS), which tacked on 4% on volume of more than 1 million after it again hit the jackpot with its third-quarter earnings report; and Align Technology ( ALGN), which advanced more than 12% after posting an above-consensus profit and announcing a $150 million buyback program. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: email@example.com