Automated retail solutions provider Coinstar (Nasdaq: CSTR) beat Street estimates handsomely in the fourth quarter, and saw its shares spike 13% in extended trading.

Let's take a look at what's clicking for the company, and how it might fare going forward.

A look at the quarter
Coinstar acquired DVD rental services provider Redbox in 2009, and this proved to be the major driver behind the company's top-line growth. The Redbox division showed an astounding 40% growth from last year with the release of new DVD titles and deployment of its new kiosks. Coinstar's revenue increased to $520 million from $391 million a year ago.

The jump in the top line was cushioned by controlled spending, resulting in earnings of $1 per share compared to $0.65 per share projected by analysts. And, what's more, Coinstar once again expects to topple Street expectations of $515 million this quarter, with revenue guidance between $530 million and $550 million.

Expanding rapidly
Coinstar's novel idea of converting loose change into cash, conceived by founder Jens Molbak 20 years ago, is now a kiosk-based business chain ranging across various countries. The company has added new product offerings to its kiosks through a string of acquisitions and partnerships over the last few years.

Coinstar's wholly owned subsidiary Redbox has now set its eyes on acquiring NCR Corporation's DVD rental business in a deal worth around $100 million. This acquisition, which is expected to be complete by the third quarter of this year, will give Coinstar access to NCR's 10,000 DVD rental kiosks, providing fuel for its top-line growth.

Netflix killer?
But that's not the end as far as its expansionary moves are concerned. Redbox, which has already eaten into its arch-rival Netflix's (Nasdaq: NFLX) share, is now preparing another challenge for the online video streaming giant. This time it has found an ally in Verizon (NYSE: VZ), through offering online video services to customers along with its existing rental services from kiosks. Reports suggest that Verizon will have a 65% share in this venture, which is being touted as a Netflix killer and goes online in the later half of the year. It's expected that the rental rates from the Redbox-Verizon stable will be cheaper than what Netflix currently offers.

The Foolish takeaway
Coinstar has grown tremendously in the past few quarters and is making impressive moves to keep up the speed. This is one stock which you should take a look at if you are considering a new addition to your portfolio.

To stay up to speed with Coinstar's rapid growth, add it to your Watchlist.

Fool contributor Harsh Chauhan owns none of the stocks mentioned in the article. Motley Fool newsletter services have recommended buying shares of Netflix. 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.