Coinstar Shares Hammered After Q2 Earnings Fall Short Of Expectations

The stock price is down about 15% after hours for the company behind the Redbox kiosks. It reported net earnings of $36.9M, +37.9% vs last year’s Q2, on revenues of $532.2M, +22.3%. So what’s the problem? Analysts thought that revenues would be closer to $545M. And earnings from continuing operations, at $1.11 a share, were short of the $1.17 forecasts. Redbox accounted for $458M in revenues, +25.9%, with operating income of $61.4M, +31.6%. Redbox had 180M rentals in the quarter, +7.4%. Interestingly, the company says that Disney’s John Carter — one of the studio’s biggest disappointments — “has performed better than our expectations”. But Coinstar notes that there’ll be 27 video releases in Q3, eight fewer than in the period last year. But August will include Lionsgate’s The Hunger Games. The company expects Redbox to generate about $2B in revenues for all of 2012. Coinstar CEO Paul Davis says that Redbox “began its expansion into Canada, extended its lead in physical rentals achieving more than 42% unit market share, and closed the NCR transaction” which provides it with the company’s Blockbuster Express-branded kiosks. Earlier this week the company said that it has named its planned streaming service Redbox Instant By Verizon. Coinstar had a one-time gain of $12M in Q1 from licensing the Redbox name to the joint venture. Its share of the losses from the venture this year is expected to be $18M.

This article was printed from