Coinstar (NASDAQ:CSTR) Remains Under Pressure, No Streaming Path

Analysts have been rapidly downwardly revising their outlook for Coinstar (NASDAQ:CSTR), which has had their share price crushed over the last couple of trading sessions on a hefty lowering of their guidance for sales and earnings.

Needham says, "Coinstar lowered its fourth quarter guidance for sales and earnings. It also lowered 2011 guidance for both items. We are reducing our 2010 earnings per share estimate from $2.20 to $1.95 and our 2011 estimate from $3.50 to $3.00, in line with the range of company guidance...More troubling, Redbox has yet to unveil a viable strategy for providing a streaming service. In our opinion, designing a profitable route to streaming is the company’s number one challenge. Indeed, we don’t see any path the company can take to get from here to there."

Needham & Company reiterates a "Hold" rating on Coinstar, which was trading at $42.56, down $14.39, or 25.27 percent, as of 1:15 PM EST.