Coinstar's Outlook Sinks Stock

NEW YORK ( TheStreet) -- Coinstar ( CSTR) is taking a hit after issuing a disappointing outlook for the fourth quarter.

The company, which operates coin-counting machines and Redbox DVD kiosks, said it expects fourth-quarter earnings in the range of 57 to 67 cents per share with revenue between $485 million to $510 million. This guidance was softer than analysts' estimates of 77 cents per share on revenue of $482.3 million.

For the full year, Coinstar sees earnings of $3.15 and $3.25 a share and revenue between $1.81 billion and $1.84 billion. The EPS view is above the current consensus estimate of $3.10 a share because the company's third-quarter profit blew analyst expectations out of the water.

Coinstar reported earnings of $37.1 million, or $1.18 a share, on revenue of $465.6 million for the September-ended period, ahead of Wall Street expectations for a profit of 88 cents per share on revenue of $462.1 million.

The company also announced it is raising its standard DVD rental fee to $1.20 per night from $1, effective on Oct. 31.

Shares of Coinstar tumbled more than 12% in after-hours activity.

- Reported by Jeanine Poggi in New York.

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