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.
Over the decades, small-cap stocks, like Coinstar have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Coinstar to My Watchlist.
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.
More from The Motley Fool
Streaming Video Claims Another Victim As Redbox Owner Agrees to Go Private
Outerwall's agreement to be taken private suggests the end of DVDs is finally in sight.
Another Netflix Killer Bites the Dust
Outerwall gets taken out in a $1.6 billion buyout, but it was already as good as gone in Netflix's eyes.
What Happened in the Stock Market Today
Why Sprint and Outerwall made big moves higher on Monday.