Coinstar posts profit growth in 2nd quarter, but 3rd-quarter forecast disappoints; shares fall

Coinstar 2Q profit grows, but outlook disappoints

BELLEVUE, Wash. — Coinstar Inc., the operator of coin-counting machines and Redbox DVD rental kiosks, said Thursday that its second-quarter profit rose as revenue grew.

However, the company’s revenue disappointed investors, as did its projections for the third quarter, sending shares down in aftermarket activity.

In the second quarter, Coinstar earned $13.4 million, or 41 cents per share, compared with $7 million, or 23 cents per share, in the same quarter of last year.

Excluding a gain from discontinued operations, the company earned 39 cents per share.

Revenue climbed 35 percent to $342.4 million.

Analysts polled by Thomson Reuters predicted income of 33 cents per share on revenue of $381.5 million. Analyst estimates typically exclude one-time items.

For the third quarter, Coinstar predicted adjusted income of 46 cents to 52 cents per share on revenue of $370 million to $390 million. Analysts expect profit of 60 cents per share on $402.7 million in revenue.

For the full year, the company projected profit of $1.88 to $2 per share on $1.43 billion to $1.51 billion in revenue. Analysts forecast profit of $1.88 per share on $1.57 billion in revenue.

Also Thursday, Coinstar said that about 13,000 of its Redbox kiosks have begun renting Blu-ray discs. The company plans to have Blu-ray discs in all 23,000 kiosks by the fall.

Shares of Coinstar dipped 7 cents to close at $48.09 before tumbling $3.76, or 7.8 percent, to $44.33 in aftermarket activity. The stock has ranged from $23.49 to $59.43 over the past year.