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What: Shares of movie-theater advertiser National CineMedia
So what: Though the company confirmed its expectations for the third quarter, the fourth quarter is looking like it'll be softer than originally anticipated. National CineMedia's management team backed off previous expectations of revenue between $460 million and $470 million and adjusted operating income before depreciation and amortization (OIBDA) between $236 million and $246 million. It now sees revenue and OIBDA clocking in at respective ranges of $425 million-$435 million and $210 million-$220 million.
Now what: Management chalked up the tougher-than-expected fourth quarter to early advertising commitments to TV crimping the spending available for movie ads as companies tighten the advertising purse strings amid economic concerns. While this is a stinker for the fourth quarter, it may also have investors worried about early 2012 -- if economic sentiment doesn't reverse, smaller ad budgets could continue to provide a drag for National CineMedia's business.
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Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.