Investing.com -- Shares in Outerwall Inc (O:OUTR) plunged more than 20% in after-hours trading on Monday after the Pacific Northwest company lowered its full-year revenue outlook for its DVD rental vendor Redbox based on the preliminary results of its fourth quarter of 2015.
For the final quarter of the year, Outerwall anticipates revenues between $1.750 billion and $1.765 billion, compared with the prior range of $1.790 billion to $1.815 billion and consolidated revenue between $2.165 billion and $2.190 billion, below the prior range of $2.205 billion to $2.240 billion.
In addition, Outerwall expects to report core adjust EBITDA from continuing operations between $460 and $475 million compared with the prior range between $490 million to $510 million. In terms of core diluted EPS from continuing operations, the company lowered its outlook from a range of 8.82 to 9.52 down to 7.65 and 8.15. The revisions come amid the expected write-off of a series of capitalized assets associated with Outerwall's SampleIt concept.
Outerwall also announced on Monday that Redbox president Mark Horak will leave the company. Erik Prusch, Outerwall's chief executive officer, will serve as interim president of Redbox until the position is filled.
"We appreciate Mark's contributions to the company and remain confident in Redbox's position," said Prusch. "While consumers' rental patterns have not returned to the levels we had expected by this time, Redbox continues to be a compelling, valuable entertainment option as the largest movie transaction service in America. Today, we remain focused on driving increases in both unique customers and rentals and driving improved top-line performance while controlling costs and creating efficiencies."
Shares in Outerwall tumbled 13.11 or 22.58% to 44.95 in after-hours.