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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.
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