The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Coinstar beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share grew significantly.
Gross margins increased, operating margins shrank, net margins grew.
Coinstar logged revenue of $520.5 million. The 16 analysts polled by S&P Capital IQ foresaw a top line of $498.5 million. Sales were 33% higher than the prior-year quarter's $390.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.00. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. GAAP EPS of $1.00 for Q4 were 186% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 29.7%, 100 basis points better than the prior-year quarter. Operating margin was 10.5%, 50 basis points worse than the prior-year quarter. Net margin was 6.1%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $517.8 million. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $3.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 542 members out of 633 rating the stock outperform, and 92 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Coinstar a green thumbs-up, and 23 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 $63.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.