The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Coinstar missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Gross margins expanded, operating margins dropped, net margins dropped.
Coinstar logged revenue of $537.6 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $561.4 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $465.6 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 $1.26. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.17 per share. GAAP EPS of $1.14 for Q3 were 3.4% lower than the prior-year quarter's $1.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 120 basis points better than the prior-year quarter. Operating margin was 12.4%, 170 basis points worse than the prior-year quarter. Net margin was 6.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $605.1 million. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $2.27 billion. The average EPS estimate is $4.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 606 members out of 691 rating the stock outperform, and 85 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Coinstar a green thumbs-up, and 16 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 $75.95.
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