In a note released Friday, Wedbush removed Outerwall (NASDAQ: OUTR) from its "Best Ideas" list due to the "significant" cut in its full-year guidance and a lack of "meaningful" near-term catalysts.
Wedbush noted that for the second quarter, Outerwall posted revenue at the low end of guidance and well below the firm's estimates but was able to beat the consensus on EPS with effective cost controls.
The company lowered its full-year 2014 revenue guidance from $2.378 - $2.488 billion to $2.254 - $2.334 billion and its EPS guidance from $6.68 - $7.18 to $5.78 - $6.28.
Wedbush's full-year estimates have gone from $2.5 billion to $2.334 billion for revenue and from $7.40 to $6.38 for EPS.
Despite being removed from the "Best Ideas" list, Wedbush has maintained an Outperform rating and $82 price target on the stock.
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