The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Coinstar missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Coinstar recorded revenue of $564.1 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $581.1 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $520.5 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 $0.93. The eight earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. GAAP EPS of $0.75 for Q4 were 25% lower than the prior-year quarter's $1.00 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 28.3%, 140 basis points worse than the prior-year quarter. Operating margin was 8.5%, 200 basis points worse than the prior-year quarter. Net margin was 4.1%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $622.4 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $5.22.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 660 members out of 745 rating the stock outperform, and 85 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Coinstar a green thumbs-up, and 19 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 $66.50.
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