TheStreet.com ran an article stating that Blockbuster (BBI) may be forced into bankruptcy if its cash flow doesn't improve and it can't restructure debt. According to the article, BBI's debt has been as high as $1 billion. In a filing with the SEC, BBI stated: "These factors raise substantial doubt about our ability to continue as a going concern."

The company currently faces $855.9 million in debt and is in talks with Hollywood studios in hopes of reducing BBI's DVD costs. The company also stated that increased competition from the likes of Netflix (NFLX) and Redbox has severely hurt its market share.

Netflix Inc. (NFLX), the world's largest online movie rental service, is scheduled to discuss its fourth-quarter financial results and 2010 outlook in a conference call Wednesday, Jan. 27, at 6:00 PM (ET), hosted by CEO Reed Hastings and CFO Barry McCarthy. A live webcast of the call will be available at the company's website.

During the three months that ended in December, Netflix announced a partnership with Best Buy (BBY) and a note offering to institutional investors. Analysts surveyed by Thomson Reuters are looking for earnings of 45 cents per share on revenue of $445.6 million, up from 38 cents per share and $359.6 million in the same period of last year.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• American Express Co. (AXP) doubled its bottom line in Q4 while its provisions for losses fell.
• Blockbuster Inc. (BBI) warned of weakness in Q4 and lowered its guidance, sending shares lower.
• Coach Inc. (COH) better-than-expected Q2 earnings were accompanied by sales growth, but shares fell.
• Comerica Inc. (CMA) posted a smaller-than-expected Q4 loss, sending shares to a 52-week high.
• CSX Corp. (CSX) posted Q4 earnings that topped estimates but its revenue fell short of expectations.

On Tuesday evening, I took a different route home than usual, and drove past my local Blockbuster (BBI) store. It was hard not to notice the brand new "Store Closing" sign, and my carpool buddies and I briefly discussed the stiff competition the chain is facing from Netflix (NFLX) and smaller rival Redbox.

Well, in light of last night's updated fiscal-year outlook, I'm beginning to think I may have witnessed a real-life bad omen (feel free to email me for your own psychic reading). After Wednesday's closing bell, Blockbuster confessed that its preliminary fourth-quarter and full-year results were unexpectedly weak -- and as a result, shares of the penny stock are slipping ever closer to theoretical support at zero.

Movie Gallery (MVGR), which plunged into bankruptcy following its ill-conceived acquisition of Hollywood Video, is working on its second restructuring effort in two years, and could close 1,000 of its 2,700 locations as part of an effort to return to profitability.

To recap: this is a company with $600 million in debt in a business that is in a permanent state of decline. The Wall Street Journal reports (subscription required) that the company could be headed back into bankruptcy: "The expected closings are part of broader discussions between Movie Gallery and its lenders, said a person familiar with the matter. The discussions are in the early stages and no decisions have been made. One possibility is that Movie Gallery could file for Chapter 11 bankruptcy reorganization in coming months, said the people familiar with the situation."

Netflix, Inc. (NFLX) is trading down today. Looks like investors aren't in the mood for the stock just before the new year begins. At the time of this writing, shares of the online DVD-rental concern were off by nearly 3%.

Kind of sad, when you think about it. Netflix is up big on the year. It was a great story of capital appreciation: buy the dips, and you made out. Whenever you thought the company was about to head into a downturn, it ended up proving you wrong. When things seemed just absolutely awful, like they did back in the first quarter, Netflix was resilient in the face of financial adversity.

NCR Corporation (NCR) shares were rising today after the company announced in the morning that it acquired DVDPlay, which operates approximately 1,300 DVD rental kiosks in the U.S. and Canada. Financial terms of the deal were not disclosed. NCR plans to convert DVDPlay-branded kiosks to its Blockbuster Express-brand, a revenue-sharing operation with Blockbuster Inc. (BBI). If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NCR.

NCR opened this morning at $9.45. So far today the stock has hit a low of $9.42 and a high of $9.87. As of 12:05, NCR is trading at $9.80 up 0.49 (5.3%). The chart for NCR looks bullish and S&P gives NCR a positive 4 STARS (out of 5) buy ranking.

On the heels of last week's better-than-expected earnings results from retailers Abercrombie & Fitch Co. (ANF), Kohl's Corp. (KSS), Macy's Inc. (M), Urban Outfitters Inc. (URBN) and Wal-Mart Stores Inc. (WMT) -- as well as disappointing numbers from Blockbuster Inc. (BBI) and JCPenney Co. Inc. (JCP) -- the coming week will bring results from more shopping- and strip-mall favorites.

TJX Companies Inc. (TJX), which operates T.J. Maxx and Marshalls stores in the U.S., settled a class action, announced share buybacks and raised its guidance in the third quarter. For the three months that ended in October, analysts surveyed by Thomson Reuters expect TJX to report earnings of $0.80 per share, up from $0.57 in the same period of last year. Revenue is expected to total $5.3 billion, or 10.2% higher than a year ago. So far, the full-year forecast is for a profit of $2.59 per share (+22.3%) on $20.0 billion (+5.5%) in sales.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Abercrombie & Fitch Co. (ANF) lower Q3 results still topped expectations and sent shares higher.
• Applied Materials Inc. (AMAT) posted much better-than-expected Q4 earnings, the first profit in a year.
• AstraZeneca (AZN) received an analyst's downgrade due to concerns over its earnings prospects.
• Blackstone Group (BX) received an analyst's upgrade following the company's Q3 results.
• Blockbuster Inc. (BBI) widened its net loss in Q3 and revenue and same-stores sales declined.
• Clean Energy Fuels Corp. (CLNE) shares declined after its Q3 numbers fell short of expectations.
• Consolidated Water Co. Inc. (CWCO) earnings prospects for 2010 earned it an analyst upgrade.

Blockbuster (BBI) is a terrible company and stock. After perusing the third-quarter report, published Friday after the bell, I don't see any reason to modify such a rough statement.

Sorry about that, but what else can I say about a huge revenue decline and a wider loss coupled with a story that continues to deteriorate? According to the Q3 earnings release, Blockbuster experienced a 21% drop on the top line. On an adjusted basis, the company lost 20 cents per share, compared to 9 cents per share in the comparable period a year ago. Helping to drive this abject performance was a 14% contraction in same-store sales.

The conventional wisdom is that consumer spending is what drives the U.S. economy. And consumer spending arises out of consumer confidence. Unfortunately, the signals along the road to economic recovery are mixed, what with the rising GDP growth and the dismal unemployment numbers. Its enough to leave investors scratching their heads. What barometers of consumer confidence will the coming week bring?

The TIPP Economic Optimism Index for November is scheduled for Tuesday, and the University of Michigan Consumer Sentiment Index for November is due out Friday.

Best Buy Inc. (NYSE: BBY) has become a leader in DVD sales in the last half-decade, but the largest consumer electronics retailer in the U.S. may see that the future of the movie rental business is in downloading -- not discs.

Netflix Inc. (NASDAQ: NFLX) has been a pioneer in this space, as the largest DVD mail-order rental firm has begun embedding its software in Blu-ray players, set-top boxes, and other devices to stream digital content over the internet -- no disc needed. Best Buy apparently wants a little piece of that action.

Best Buy (NYSE: BBY) may be the world's largest electronics retailer, but it realizes that it faces a huge threat to a hefty chunk of its business. Apple (NASDAQ: AAPL) is moving plenty of movies and other soon-to-be former DVD fare through iTunes, staking a claim on a business that once belonged to Best Buy. The big box store is getting ready to fight back (finally?).

Using technology it's licensing from Sonic Solutions (NASDAQ: SNIC), Best Buy is opening an online store for movies and television shows. Best Buy CEO Brian Dunn says this move will expand the company's presence in services and will bolster company loyalty. That's the press release version, of course. The reality is that Best Buy needed to do something to protect this portion of its revenue and probably should have made the move several years ago.

One thing you can say about Netflix Inc. (NASDAQ: NFLX), the DVD rental pioneer doesn't stand still. It has been innovating for years in bringing video content to consumers over as many mediums as it can. DVDs and Blu-ray discs are still the staple of its business, but Netflix can now be found embedded in newer Blu-ray disc players and even TVs.

No more waiting for discs to show up -- it can stream thousands of movies instantly to that living room flat screen television. So, it stands to reason that a house brand of leading consumer electronics retailer Best Buy Inc. (NYSE: BBY) will now come with Netflix technology built-in.

Late Wednesday, Blockbuster Inc. (NYSE: BBI) scored a ratings upgrade from Standard & Poor's. The ratings agency raised Blockbuster's corporate credit rating from "CCC" to "B-" with a stable outlook. S&P commented, "The stable outlook reflects our belief that liquidity will remain adequate over the near term despite continued operational weakness and moderate deterioration of the company's credit protection metrics."

S&P's new rating is still six notches into junk territory, but the upgrade is nevertheless a vote of confidence in Blockbuster's refinancing efforts. On Monday, the video rental firm announced plans to offer up to $340 million in senior secured notes due 2014, and yesterday, Blockbuster said it would close up to 40% of its brick-and-mortar stores during the next two years.