Coinstar Surges on DVD Sales
NEW YORK (
) --
Coinstar
(CSTR) - Get Report
, maker of Redbox DVD kiosks, is soaring in Friday morning trading after it blew by Wall Street's forecast in the first quarter.
During the quarter, the company earned $6.4 million, or 21 cents a share, significantly higher than the 13 cents analysts estimated. Last year Coinstar reported a profit of $2 million, or 7 cents a share.
Coinstar's revenue nearly doubled to $350 million from $239 million last year. Coinstar said it received its biggest boost from sales at its DVD kiosks, which soared 70% during the quarter.
Looking ahead, Coinstar predicts second-quarter earnings in the range of 30 cents to 34 cents a share, and full-year earnings between $1.82 and $1.94 a share. Analysts are looking for a profit of $1.59 a share in 2010.
Shares of Coinstar are surging 18.7% to $45.35 early in the day.
Blockbuster
(BBI) - Get Report
, which has steadily been losing market share to Redbox, is falling 2.2% to 39 cents on the news.
-- Reported by Jeanine Poggi in New York.
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