Outerwall Beats Q3 Views, Outlook Below Expectations

Outerwall Inc OUTR met third-quarter profit expectations Thursday and offered an outlook below expectations.

Outerwall forecast fourth-quarter core earnings of $1.85 to $2.15 per share, on revenue of $575 million to $605 million, versus the Street consensus of $2.06 per share on revenue of $600.17 million.

Outerwall added that it will discontinue quarterly guidance in 2015 and only offer full-year forecasts.

In the recent period, revenue from its Redbox video kiosks fell 12 percent to $438.0 million from $491.7 million a year earlier.

Its CoinStar change machine revenue grew 7 percent to $85.1 million, and its New Ventures ATM business's revenue grew to $29.7 million compared with $15.2 million a year earlier prior to an acquisition.

Free cash flow increased 39 percent to $30.3 million from $21.8 million a year earlier.

Third-quarter net income from continuing operations fell to $17.9 million, or $0.93 per share, compared with $86.8 million, or $3.10 per share last year.

But the earlier period included a gain of $2.36 per share related to an acquisition.

Core earnings in the recent period were $1.44 per share, compared with $1.12 per year earlier. Revenue for the recent period fell 5.7 percent to $552.9 million, from $586.5 million a year earlier.

Wall Street expected core earnings of $1.14 per share on revenue of $562.17 million.

Outerwall was down about 0.6 percent afterhours at $56.25.