Coinstar 2Q Profit Doubles On Redbox Gains

Date : 07/28/2011 @ 4:54PM
Source : Dow Jones News
Stock : Outerwall Inc. (MM) (OUTR)
Quote : 52.0  0.0 (0.00%) @ 2:05AM

Coinstar 2Q Profit Doubles On Redbox Gains

Historical Stock Chart

5 Years : From Jan 2013 to Jan 2018

Click Here for more CAPSTAR FINANCIAL HOLDINGS, INC. Charts.

Coinstar Inc.'s (CSTR) second-quarter profit doubled as the company's Redbox vending machines continued to drive higher sales.

Coinstar on Thursday also projected a third-quarter profit of 83 cents to 93 cents a share with revenue between $450 million and $470 million. Analysts polled by Thomson Reuters had expected 86 cents a share and $469 million, respectively.

Shares were still down 2.6% at $50.01 after-hours Thursday. The stock was off 9.1% this year through the close.

Coinstar's Redbox DVD-rental business has quickly expanded over the past few years after its parent sold ancillary operations to focus on its movie-rental and coin-counting operations. The company has for months called digital delivery a priority as well but hasn't yet detailed its strategy for the move, which would more directly compete with rival Netflix Inc. (NFLX).

The company is meanwhile searching for a new head of the fast-growing Redbox segment after President Mitch Lowe last week resigned to pursue entrepreneurial and other interests.

Coinstar posted a profit of $26.7 million, or 83 cents a share, in the quarter, up from $13.4 million, or 41 cents a share, a year earlier. Earnings from continuing operations reached 98 cents compared with 39 cents a year ago. Revenue increased 27% to $435.2 million.

The company's raised earnings outlook last week projected 96 cents to $1 a share, while its narrowed revenue forecast called for $434 million to $436 million.

Operating margin widened to 13.4% from 8.6% as the Redbox segment better leveraged expenses and benefited absent a prior-year charge.

Revenue from Redbox, the company's biggest top-line contributor, grew 34% to $363.9 million as coin-services revenue climbed 1% to $71.1 million.

   -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; 

Latest OUTR Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.