Yum! Brands, Coinstar: After-Hours Trading (Update 1)

Updated from 5:01 p.m. ET for latest share prices, additional information about PMC-Sierra, Veeco Instruments, and Standard Pacific.

NEW YORK ( TheStreet) -- Shares of Yum! Brands ( YUM) rose in late trades on Monday after the quick-service restaurant operator beat Wall Street's expectations for its fourth-quarter results amid strong sales growth in China.

Yum!, whose restaurant brands include KFC, Taco Bell and Pizza Hut, also said it expects to meet or exceed its target for earnings per share growth of at least 10% in 2012.

The Louisville, Ky.-based company posted earnings excluding items of $535 million, or 75 cents a share, for the December-ended period on revenue of $4.11 billion, ahead of the average estimate of analysts polled by Thomson Reuters for earnings of 74 cents a share on revenue of $4.03 billion in the quarter.

Revenue rose 15% year-over-year in the latest quarter with China same-store sales jumping 21% in the three-month period.

The stock was last quoted at $64.55, up 2.2%, on volume of more than 515,000, according to Nasdaq.com. Based on Monday's regular-session close at $63.19, the shares are up 30% in the past year, hitting a 52-week high of $64.75 on Friday. At current levels, the stock's forward price-to-earnings multiple sits at 19.5X.

"The highlight of 2011 was again the exceptional performance of our China business, which grew system sales by 29% and operating profit by 15%, prior to foreign currency translation," said David Novak, the company's chairman and CEO, in a statement. "We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%. Clearly, our KFC and Pizza Hut brands in China continued to strengthen their category-leading positions."

Analysts were fairly bullish on Yum! ahead of the report with 15 of the 22 ratings on the stock at strong buy (7) or buy (8), and the median 12-month price target at $66.

Check out TheStreet's quote page for Yum! Brands for year-to-date share performance, analyst ratings, earnings estimates and much more.


A busy day for Coinstar ( CSTR) got even more eventful after the closing bell as the company reported stellar fourth-quarter results along with a deal to acquire NCR Corp.'s ( NCR) entertainment business, which includes DVD kiosks and inventory, among other assets.

The after-hours news following an announcement of a streaming content joint venture with Verizon ( VZ) early Monday.

For its fourth quarter ended in Dec. 31, Coinstar reported a profit of $31.5 million, or $1 per share, on revenue of $520.5 million. The average estimate of analysts polled by Thomson Reuters was for earnings of 64 cents a share on revenue of $498.1 million.

The company also forecast core earnings of 76 to 91 cents a share for its fiscal first quarter ending in March on revenue of between $530 million to $555 million vs. Wall Street's current consensus view for a profit of 86 cents a share on revenue of $514.5 million.

For fiscal 2012, Coinstar sees core earnings of $3.80 to $4.30 a share on revenue ranging from $2.075 billion to $2.250 billion vs. the average analysts' estimate for a profit of $3.86 a share on revenue of $2.17 billion.

In the NCR deal, Coinstar said it will be paying up to $100 million for the assets, and that it has also agreed to a manufacturing and services agreement with NCR.

The stock was last quoted at $59.02, up 16.7%, on volume of 2.4 million, according to Nasdaq.com. Based on Monday's regular-session close at $50.56, the shares had risen more than 20% over the past year.

"The strength of our core businesses provides a solid foundation that enables us to focus on key growth initiatives in 2012, including our joint venture with Verizon that was announced earlier today," said Paul Davis, the company's CEO, in a statement. "We are delighted to be partnering with Verizon to offer consumers affordable entertainment in both physical and streaming formats and look forward to launching our service in the second half of the year."

Coinstar said its Redbox DVD rental kiosk business delivered year-over-year revenue growth of nearly 40% in the latest quarter, totaling $445.6 million, because of "new kiosk installations, strong performance of new release titles, and consumer acceptance of the price increase," which went into effect in October.

NCR shares also got a lift from the news as well as its own above-consensus results, gaining 8.3% to $20.60 on volume of more than 85,000. The company reported a non-GAAP profit from continuing operations of 65 cents a share for the fourth quarter on revenue of $1.64 billion, beating Wall Street's view for earnings of 56 cents a share on revenue of $1.58 billion.

Other stocks active in late trades included PMC-Sierra ( PMCS), whose stock was down 6% to $6.33 on volume of more than 350,000 after the chip maker reported fourth-quarter revenue of $152.6 million, falling short of the analysts' average view of $155.3 million, and said "difficult conditions" are impacting its near-term outlook; Veeco Instruments ( VECO), whose shares dipped 4% to $26.01 on volume of more than 90,000 after the maker of LED and solar cell capital equipment forecast non-GAAP earnings of 13 to 34 cents a share for its fiscal first quarter vs. the current consensus estimate for earnings of 39 cents a share; and Standard Pacific ( SPF), whose stock leapt 7.4% to $4.35 on volume of more than 100,000 after the Irvine, Calif.-based home builder reported net income of $15.3 million, or 4 cents a share, for its fiscal fourth quarter, double Wall Street's expectations for earnings of 2 cents a share, and said it closed 2011 with a backlog of 681 homes, its highest year-end level since 2007.

-- Written by Michael Baron in New York.

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