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What: Shares of Coinstar
So what: Volume helped Coinstar overcome higher operating costs. Overall revenue surged 31% to $424.1 million. Sales from Redbox DVD rentals increased 38% and now account for 85.4% of revenue. Adjusted profit improved 53% to $0.46 a share. Wall Street had been calling for $409.4 million in revenue and $0.22 a share in adjusted earnings.
Now what: But if investors liked the Q1 results, they loved management's Q2 guidance. Executives expect Coinstar to take in $0.76 to $0.86 a share in adjusted profits on $430 million to $450 million in revenue. Analysts had been calling for $0.68 and $432.7 million, respectively, Yahoo! Finance reports.
Video games will play a role in producing those numbers. In June, Coinstar will begin renting popular titles via its Redbox kiosks, forcing Netflix
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. Netflix is a Motley Fool Stock Advisor selection. Alpha Newsletter Account LLC has purchased Netflix puts. You can try any of our Foolish newsletter services free for 30 days.
Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.
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