The 10-second takeaway
For the quarter ended March 31 (Q1), Coinstar beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Coinstar logged revenue of $568.2 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $562.5 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $424.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.39. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.42 per share. GAAP EPS of $1.65 for Q1 were much higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.3%, 560 basis points better than the prior-year quarter. Operating margin was 13.8%, 640 basis points better than the prior-year quarter. Net margin was 9.5%, 750 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $545.8 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $2.26 billion. The average EPS estimate is $4.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 582 members rating the stock outperform and 95 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Coinstar a green thumbs-up, and 22 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 $70.62.
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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.