The 10-second takeaway
For the quarter ended March 31 (Q1), Coinstar met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Coinstar reported revenue of $574.7 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $580.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 10 earnings estimates compiled by S&P Capital IQ predicted $0.86 per share. Non-GAAP EPS of $0.93 for Q1 were 33% lower than the prior-year quarter's $1.39 per share. GAAP EPS of $0.78 for Q1 were 53% lower than the prior-year quarter's $1.65 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 29.0%, 230 basis points worse than the prior-year quarter. Operating margin was 8.3%, 550 basis points worse than the prior-year quarter. Net margin was 3.9%, 560 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $585.8 million. On the bottom line, the average EPS estimate is $1.24.
Next year's average estimate for revenue is $2.42 billion. The average EPS estimate is $5.14.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 639 members out of 732 rating the stock outperform, and 93 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 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 $64.31.
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