"Coinstar Inc., operator of Redbox DVD vending machines, plunged 33 percent after preliminary fourth-quarter sales and profit missed projections because of delayed access to Hollywood’s newest movies.
The stock fell as much as $18.95 to $38 in extended trading at 5 p.m. New York time after the announcement, the biggest drop in more than a decade. Coinstar slipped 28 cents to $56.95 in regular Nasdaq Stock Market trading. The company said today in a statement that it plans to report complete results on Feb. 3.
Coinstar has agreed to a 28-day delay in receiving the latest DVD releases from Hollywood, giving studios a four-week window to sell their latest movies before offering them for rental in Redbox kiosks. The delay requires management to do a better job of selecting titles to keep customers renting while they wait for newer releases, said Michael Pachter, an analyst with Wedbush Securities in Los Angeles."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment