Coinstar Shares Fall After Q3 Earnings Fall Short Of Expectations

UPDATE, 3:23 PM: If you were waiting for detailed information about the Redbox Instant by Verizon streaming plans, you’ll have to keep waiting. Coinstar told analysts in a conference call that the online service is in an internal beta test and the test will be opened to the public soon. “We’ve been really pleased with the progress,” CEO Paul Davis says. But he didn’t offer much more, including what studios might participate in addition to Warner Bros. “We’ll talk more about what the other offerings will be when we go public.” Coinstar said it kicked $10.5M into the joint venture in Q3. If it has to add more in Q4 then it will be “relatively small.”

PREVIOUS, 1:16 PM: Even the announcement of a new distribution agreement with Warner Bros — which will provide Redbox kiosks with home video titles 28 days after they hit retail stores — wasn’t enough to help the Coinstar in investors’ eyes. The stock price started to dive in late trading, and continued to fall about 8% after hours when the company behind the Redbox kiosks reported disappointing Q3 results. Net income of $36.8M was down 9.5% vs the period last year, on revenues of $537.6M, up 15.5%. Analysts thought that revenues would come in closer to $557M. And earnings per share from continuing operations, at $1.14 was a penny shy of forecasts. (more…)

This article was printed from https://deadline.com/2012/10/coinstar-shares-fall-after-q3-earnings-fall-short-of-expectations-359862/