Why Outerwall (OUTR) is Jumping on Friday

NEW YORK (TheStreet) -- Outerwall (OUTR) was jumping on Friday after reporting better-than-expected earnings after the bell a day earlier.

By late morning, shares of the specialty retailer had surged 12.8% to $71.76.

The owner of Redbox recorded fourth-quarter net income of $1.68 a share, 44 cents higher than analysts surveyed by Thomson Reuters had expected. Revenue of $593.7 million, though 5.3% higher year-over-year, missed consensus by $1.64 million.

Fiscal 2013 per-share earnings of $5.92 exceeded consensus of $5.12 a share, while revenue of $2.3 billion was just shy of estimates of $2.31 billion.

"Our results reflect the value consumers recognize in our core Redbox and Coinstar brands, with Redbox driving over 775 million rentals in 2013 and Coinstar pushing through $300 million in annual revenue for the first time," said CEO J. Scott Di Valerio in a statement.

By segment, movie kiosk provider Redbox, its most profitable business, saw quarterly revenue increase 1.7% to $496.4 million and generated 192 million rentals over the three months. Self-service coin-counting machine business Coinstar increased revenue 8.4% to $80.7 million.

Over 2013, the company repurchased $195 million of common stock. In January, the board increased the share repurchase authorization by $500 million, bringing the total to $65 million.

For the March-ending quarter, Washington-based Outerwall expects revenue between $570 million and $600 million, with diluted earnings in the range of 77 cents to 97 cents a share. Analysts expected earnings of $1.06 a share on $592.71 million in sales.

Over fiscal 2014, management expects revenue between $2.358 billion and $2.498 billion, with diluted earnings of $5.16 to $5.76 a share. Analysts forecast earnings of $5.74 a share on $2.41 billion in revenue.

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