Market Overview

Coinstar Raises Q1 EPS Guidance to $1.36-1.40 vs $0.90 Est

Coinstar, Inc. (Nasdaq: CSTR) today announced certain preliminary financial results for the first quarter ended March 31, 2012, including results that exceeded previous guidance for the first quarter.

Consolidated revenue $567.0 million to $569.2 million Income from continuing operations $53.0 million to $54.3 million Core adjusted EBITDA from continuing operations* $127.9 million to $130.1 million Diluted earnings per share from continuing operations $1.62 to $1.66 Core diluted earnings per share from continuing operations* $1.36 to $1.40 Higher than expected core adjusted EBITDA from continuing operations and core diluted EPS from continuing operations reflect the increased revenue and the positive impact of incremental turns on a number of titles, including Moneyball, Puss and Boots and 50/50, which received awards attention, as well as In Time, Abduction and Mr. Popper's Penguins. Core diluted EPS from continuing operations also benefitted from lower than expected card processing fees for Redbox resulting from a lower mix of regulated debit card transactions, a special rate extension for the first quarter and the rollout of single billing during March, which collectively added between $0.12 and $0.14 to core diluted EPS from continuing operations for the quarter.

The company realized lower than expected direct operating costs at Redbox due to increased efficiencies in obtaining select content through its workaround process. The company also recognized additional savings due to the timing of expenses as certain programs and new hires moved to later in the year. Lower operating expenses added between $0.07 and $0.09 to core diluted EPS from continuing operations for the quarter.

For the 2012 full year, Coinstar management now expects:

Consolidated revenue between $2.155 billion and $2.280 billion; Core adjusted EBITDA from continuing operations* between $465.0 million and $495.0 million; and Core diluted EPS* from continuing operations between $4.40 and $4.80 on a fully diluted basis.

Posted-In: News Guidance

 

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