Market Features

Return to Article

Coinstar's 1Q Profit Slides But Sales Surge

The Associated Press

BELLEVUE, Wash. (AP) — Coinstar Inc., which makes coin-counting machines, said Thursday its first-quarter profit fell 27 percent as several big one-time charges offset a dramatic surge in revenue.

In the first three months of this year the company earned $2 million, or 7 cents per share, compared with $2.7 million, or 10 cents per share, in the year-earlier period.

Excluding one-time items, Coinstar earned 14 cents per share.

Analysts surveyed by Thomson Reuters expected, on average, earnings per share of 7 cents. Such expectations typically exclude one-time items.

Revenue surged 43.2 percent to $271.2 million from $190.5 million, better than the $261.9 million Wall Street expected.

"The company's DVD kiosk and coin processing product lines continue to post strong results, underscoring the value proposition and resiliency of these businesses," Chief Executive Paul Davis said in a statement released by the company.

"In addition, our portfolio approach and ability to drive foot traffic continues to resonate with retailers."

Coinstar Inc. also said second-quarter revenue will top Wall Street estimates and earnings per share will fall within range of analyst expectations of 17 cents per share.

In aftermarket trading, shares fell 48 cents to $34.95.