Coinstar Earnings: Here’s Why Investors are Excited Now

Coinstar Inc. (NASDAQ:CSTR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.45%.

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Coinstar Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.09% to $0.93 in the quarter versus EPS of $1.39 in the year-earlier quarter.

Revenue: Rose 1.15% to $574.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coinstar Inc. reported adjusted EPS income of $0.93 per share. By that measure, the company beat the mean analyst estimate of $0.86. It missed the average revenue estimate of $579.41 million.

Quoting Management: “We continued to deliver long-term value for our stockholders through strong performance this quarter,” said J. Scott Di Valerio, chief executive officer of Coinstar, Inc. “The continued growth in Redbox market share shows our ability to win with consumers, and the installation of 350 TD Canada Trust-branded coin-counting kiosks demonstrates our ability to expand our Coin business in new channels. We are energized by our ability to develop exciting new concepts across our businesses that we believe will generate value for consumers, retailers and our stockholders.”

Key Stats (on next page)…

Revenue increased 1.88% from $564.08 million in the previous quarter. EPS were the same at $0.93 as the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.27 to a profit $1.25. For the current year, the average estimate has moved down from a profit of $5.15 to a profit of $5.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)