said on Monday that it expects its second-quarter results to be above the consensus estimate, and the company raised its earnings per share guidance for the rest of the year.
The video rental chain expects its second-quarter pro forma EPS to be in the range of 23 cents to 25 cents, compared with 10 cents a share in the year-ago quarter. Analysts polled by Thomson Financial/First Call are looking for the company to earn 19 cents a share.
The pro forma results exclude noncash compensation expense from stock options, a charge relating to the extinguishment of debt, and a previously announced nonrecurring charge of $4 million, or 8 cents a share, to resolve a late fee class-action lawsuit.
Movie Gallery said that, due to its stronger-than-anticipated results for the first half of 2002, it has raised its guidance for the remainder of the year. The company now expects to earn $1.08 to $1.16 a share on a pro forma basis, up from original guidance of 90 cents to $1.00. Wall Street is looking for $1.04, according to First Call. The company also expects low single digit percentage increases in same-store sales for the year, and EBITDA of $73 million to $78 million.
In a press release, Movie Gallery CEO Joe Malugen said, "The company's results continue to benefit from stronger profit margins related to the ongoing transition to DVD. We also remain pleased with the performance of the 475 net new stores added through acquisitions and internal development since the end of the second quarter of 2001."
Shares of Movie Gallery closed at $17.74 Monday before the news.