Blockbuster (BBI) Shares Plummeting Amid Q1 Loss and 'Challenging' Outlook
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Shares of Blockbuster Inc. (NYSE: BBI) are getting absolutely slammed in the after-hours trading session as the company just announced that it swung to a loss during the first quarter of this year. Also warning that the next 12-18 months will be "challenging," the stock has now fallen nearly 26% from today's close.
The movie rental company reported a first-quarter loss of $65.4 million or 33 cents per share, reversing from a profit of $27.7 million or 13 cents per share in the same period last year. Excluding one-time items, Blockbuster posted a loss of 14 cents per share, in line with the analyst estimate.
Revenue for the company slipped from $1.09 billion last year to $939.4 million in the most recent period, but came in ahead of the market consensus of $933.25 million. Same store sales for Blockbuster fell 7.1 percent.
“During the first quarter we continued progress to recapitalize our business. We have had encouraging discussions with both financial and strategic partners and expect to have additional details to report by our annual stockholders’ meeting in late June,” stated Jim Keyes, Chairman and Chief Executive Officer of Blockbuster Inc. “In spite of competitive challenges, we experienced better domestic rental same-store comparables trends and achieved a number of goals to establish a significant competitive advantage going forward.”
The company is losing out to other options that consumers are currently fixated to, including rental-by-mail service Netflix (Nasdaq: NFLX) and the rental Redbox kiosks owned by Coinstar (Nasdaq: CSTR) that are littered throughout grocery and department stores across the US.
The movie rental company reported a first-quarter loss of $65.4 million or 33 cents per share, reversing from a profit of $27.7 million or 13 cents per share in the same period last year. Excluding one-time items, Blockbuster posted a loss of 14 cents per share, in line with the analyst estimate.
Revenue for the company slipped from $1.09 billion last year to $939.4 million in the most recent period, but came in ahead of the market consensus of $933.25 million. Same store sales for Blockbuster fell 7.1 percent.
“During the first quarter we continued progress to recapitalize our business. We have had encouraging discussions with both financial and strategic partners and expect to have additional details to report by our annual stockholders’ meeting in late June,” stated Jim Keyes, Chairman and Chief Executive Officer of Blockbuster Inc. “In spite of competitive challenges, we experienced better domestic rental same-store comparables trends and achieved a number of goals to establish a significant competitive advantage going forward.”
The company is losing out to other options that consumers are currently fixated to, including rental-by-mail service Netflix (Nasdaq: NFLX) and the rental Redbox kiosks owned by Coinstar (Nasdaq: CSTR) that are littered throughout grocery and department stores across the US.
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