Coinstar (Nasdaq: CSTR ) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Coinstar missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins improved, operating margins shrank, net margins improved.
Coinstar chalked up revenue of $532.2 million. The 14 analysts polled by S&P Capital IQ anticipated a top line of $546.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $435.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.25. The eight earnings estimates compiled by S&P Capital IQ predicted $1.19 per share. GAAP EPS of $1.11 for Q2 were 34% higher than the prior-year quarter's $0.83 per share. (The prior-year quarter included -$0.15 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.0%, 20 basis points better than the prior-year quarter. Operating margin was 13.1%, 30 basis points worse than the prior-year quarter. Net margin was 6.9%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $565.1 million. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $2.28 billion. The average EPS estimate is $4.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 603 members out of 698 rating the stock outperform, and 95 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Coinstar a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coinstar is outperform, with an average price target of $82.33.
Over the decades, small-cap stocks, like Coinstar have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.