Coinstar's (NASDAQ:CSTR) second-quarter earnings results made the masterminds behind the cash-for-coin, merry-go-round, and disc-in-a-box kiosk operation look like bona fide geniuses. And we should have all seen it coming. The company seems to be taking over the world one storefront at a time.

The company's net income attributable to the magnate grew to $7 million -- 160% over last year's results -- on 43% revenue growth. Net sales totaled $314 million for the quarter. The improved results came primarily from its booming Redbox DVD business, whose revenues more than doubled year over year.

Mad cookies, mad jars
If you're not entirely familiar with everything Coinstar does, take a look at this breakdown of its revenues by segment.

Revenues by Segment

Q2 2009

Q2 2008

Growth

DVD

188.9

90.0

110%

Coin

64.9

64.5

1%

Entertainment

31.9

35.8

-11%

Money transfer

22.2

23.8

-7%

E-payment

6.1

5.8

5%

Total

314.0

219.9

43%

Source: Coinstar investor presentation.

As you can see, Coinstar has its hands in a number of cookie jars. Management helped growth in the DVD segment by investing heavily in marketing and deploying new kiosks. The company's namesake coin segment, meanwhile, saw results hampered by adverse foreign currency exchange rates -- had rates stayed flat, the segment would have grown by 4%.

The entertainment division collects quarters from kids' rides you've probably seen near the entrances of supermarkets. The company blamed a reduction in machines and less foot traffic at Wal-Mart (NYSE:WMT) and Coinstar's other retail partners.

As for its money transfer and e-payment businesses, Coinstar's management says that they don't leverage its core competencies, and the company is seeking strategic alternatives with regard to those two segments. That's not surprising, given how money transfer is a cutthroat industry dominated by Western Union (NYSE:WU), leaving smaller competitors like Global Payments (NYSE:GPN) to fight over scraps. Exiting the industry will let Coinstar focus on its more successful core businesses.

The verdict
All in all, I see Coinstar as a great company with a lot of room to grow. Its DVD growth shows that it can compete with rivals like Netflix (NASDAQ:NFLX) and Blockbuster (NYSE:BBI) on their own turf.

But with its stock trending upward lately, Coinstar isn't cheap; it has more than doubled from its December lows. Even with earnings on the rise, its forward P/E ratio is still nearly 27. Even if the business continues on its upward path, I'm hoping that the stock will see some dips and dives along the way that will make much more attractive entry points. I'd likely scoop it up for myself if it makes its way back down to the $25-$30 range.

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Fool contributor Chris Jones does not own shares of any company mentioned in this article … However, he cannot speak for Mr. Gordon Lightfoot. Netflix and Western Union are Motley Fool Stock Advisor recommendations. Wal-Mart and Western Union are Motley Fool Inside Value picks. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool's disclosure policy, it is said, never gives up its dead when the gales of November come early.