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  DVD rentals lift Hollywood 2nd-qtr outlook
Time: 15:02 EST/20:02 GMT | News Source: Reuters | Posted By: Alex Harris

Hollywood Entertainment Corp. HLYW.O on Monday said it expects its second-quarter results to beat forecasts and full-year results to meet or beat estimates as the No. 2 U.S. video rental chain benefited from growing demand for DVD and video games. Hollywood said it now sees second-quarter earnings of 24 cents to 26 cents a share before special items, compared with the analysts' average estimate of 21 cents compiled by research firm Thomson Financial/First Call. It earned 8 cents in the year-earlier period.

The Portland, Oregon-based company, which runs 1,800 Hollywood Video stores, also said it sees its full-year 2002 earnings to be in the range of $1.10 to $1.14 a share before one-time charges. The First Call consensus view is $1.10. Shares rose 5.2 percent, or 99 cents, to $20.04 in midday Nasdaq trade. The stock is up about 40 percent since the beginning of the year, outperforming shares of industry leader Blockbuster Inc. BBI.N , which are up 20 percent over that same period.

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