Coinstar Revenue Rises on Redbox Strength
Coinstar, which released preliminary numbers earlier this month, brought in revenue of $568.2 million, a 34% hike on the prior year's quarter, and comfortably above analysts' forecast of $563.49 million.
The company's Redbox revenue climbed 38.8% year-over-year to $502.9 million, driven by growth in same-location sales, new kiosk installations, and the strong performance of new release titles. In a statement, Coinstar also noted consumer acceptance of a price increase implemented on Oct. 31, 2011.
Excluding items, Coinstar earned $1.39 a share, up from 46 cents a share in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of $1.34 a share."Coinstar delivered strong financial results in the first quarter demonstrating the strength of our core businesses and the value we offer consumers," said Paul Davis, the Coinstar CEO, in the statement. "As we move forward in 2012, we continue to execute on a number of important initiatives including the launch of our Redbox digital solution with Verizon (VZ) via our joint venture and the rollout of one to two of our new venture businesses." The Bellevue, Wash.-based firm expects second-quarter revenue between $525 million and $550 million and earnings between $1.09 and $1.24 a share. Analysts are looking for sales of $544.14 million and earnings of $1.05 a share. For the full year, Coinstar reiterated its earlier forecast of revenue between $2.155 billion and $2.28 billion and earnings between $4.40 and $4.80 a share, at the low end of analysts' forecasts. Wall Street expects sales of $2.26 billion and earnings of $4.74 a share. Coinstar shares slipped 4.04% to $64.78 in extended trading on Thursday. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
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