The company behind its namesake coin-counting machines and Redbox disc-renting kiosks had its cake and ate it, too, last night.
First came the blowout earnings report. Revenue soared $520.5 million, fueled almost entirely by a nearly 40% surge in its Redbox business. With Redbox now accounting for 86% of Coinstar's revenue, isn't it just a matter of time before the company takes on a new corporate moniker?
Earnings soared 47% to $1.00 a share. Analysts were clueless, targeting net income to actually decline to $0.64 a share on a mere $498.1 million in revenue.
Coinstar's second "aha moment" came when it revealed it was snapping up NCR's
Boom. Well-played, Coinstar.
These are certainly interesting times for Coinstar. Earlier yesterday it announced plans to team up with Verizon
Coinstar's outlook is also encouraging. The company sees a 2012 profit of $3.80 a share to $4.30 a share on $2.075 billion to $2.25 billion in revenue. Sure, this is decelerating growth. The midpoints imply earnings and revenue climbing just 12% and 17% higher, respectively. However, double-digit growth is nothing to sneeze at while cynics -- like me, I'll sheepishly admit -- are predicting an end to disc-based rentals.
Coinstar isn't going down without a fight, and judging by all of last night's news it doesn't plan on going down at all.
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Longtime Fool contributor Rick Munarriz has been a Netflix subscriber and shareholder since 2002. He does not own shares in any of the other stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.