BELLEVUE, Wash. (
) -- Shares of
exploded in extended trading on Thursday after the DVD rental specialist reported better-than-expected preliminary first-quarter results.
The Bellevue, Wash.-based company said it expects first-quarter sales and earnings that exceed both its own guidance and analysts' projections. Coinstar reported preliminary revenue between $567 million and $569.2 million and earnings, excluding items, between $1.36 and $1.40 a share.
Analysts surveyed by
were looking for revenue of $537.66 million and earnings of 90 cents a share in the quarter.
Investors responded positively to the company's numbers, pushing Coinstar's stock up $8.95, or 14.6%, to $70.26 in the after-hours session.
Coinstar said the revenue increase was driven by stronger-than-anticipated consumer demand at its Redbox DVD rental business, particularly during February and March.
Coinstar also raised its guidance for the fiscal year, projecting sales between $2.16 billion and $2.28 billion and earnings of $4.40 to $4.80 a share. Analysts surveyed by
are currently looking for revenue of $2.22 billion and earnings of $4.09 a share.
Written by James Rogers in New York.
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