Vid rental biz shares’ gain

Stocks fast-forward on Movie Gallery results

HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter.

On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share.

Revenue at stores open at least a year jumped 5% in the quarter, compared with earlier estimates of low-single-digit comps. Company operates 2,050 stores.

News sent shares of Movie Gallery up 7.15% to close at $22.02 Wednesday. Company will release full financial results for the third quarter Nov. 4.

Though not normally considered a bellwether, announcement by Movie Gallery lit a fire under other vidtailer stocks Wednesday.

Blockbuster up 3.4%

Shares of Blockbuster closed up 3.4% at $22.43, while No. 2 chain Hollywood Video closed up 2.42%, to $17.81.

Hollywood is scheduled to release its third-quarter results next week. In July, the company projected net income would grow 12% in the third quarter.

Blockbuster will release third-quarter earnings next month. In August the company said it expected “gross profit dollars” in the third quarter to be up in the high single-digits, while same-store sales would be flat.

Netflix stock dips

Shares of Netflix, the online DVD rental service, were unaffected by Movie Gallery’s announcement, dropping 1.6% on the day. Company will release its third-quarter results next week.

Last week, Netflix announced a 74% increase in subscribers for the third quarter, well ahead of expectations, sending its shares up 11% on the day.

Shares of Netflix have more than doubled since April.

More Digital

  • France fans with painted facesFrance v

    France Celebrates Soccer World Cup Triumph

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

  • 13 Reasons Why S2

    Netflix Q2 Preview: Can International Flywheel Keep Spinning on Big Content Spending?

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

  • Selena Gomez

    Woman Charged in Selena Gomez Email Hacking

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

  • Anderson Cooper

    Anderson Cooper Takes CNN to Facebook in Quest for Mobile Views

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

  • No Merchandising. Editorial Use Only. No

    The Beatles' 'Yellow Submarine' Now Streaming Exclusively on Amazon Prime Video

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

  • YouTube TV

    YouTube TV Offers One-Week Credit After World Cup Outage

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

  • Gawker Logo

    Gawker Website Acquired by Bustle Owner for $1.35 Million in Bankruptcy Auction

    HOLLYWOOD — Wall Street is feeling bullish about the video rental biz in the third quarter. On Wednesday, No. 3 vidtailer Movie Gallery said higher-than-expected revenue for the quarter ended Oct. 5 would push net earnings per share to at least 29¢, compared with the company’s earlier estimate of 25¢-27¢ per share. Revenue at stores […]

More From Our Brands

Access exclusive content