Coinstar forecasts results below estimates, shares fall
(Reuters) - Coinstar Inc CSTR.O, the operator of Redbox video rental kiosks, reported lower-than-expected fourth-quarter revenue, and forecast current-quarter results significantly below analysts' estimates.
The company's shares fell 7 percent in after-market trading, after closing at $52.10 on the Nasdaq on Thursday.
Coinstar expects earnings from continuing operations of 77 cents to 92 cents per share for the first quarter on revenue of $568 million to $593 million.
Analysts on average were expecting earnings of $1.21 per share on revenue of $624.2 million, according to Thomson Reuters I/B/E/S.
Video streaming is taking greater share of the video rental market evidenced by robust subscriber growth at dominant movie rental company Netflix Inc (NFLX.O), J.P. Morgan analyst Paul Coster wrote in a pre-earnings note.
Netflix impressed Wall Street last month with a surprisingly strong holiday quarter, when sales of tablets and Internet-connected TVs helped lift subscriptions.
Coinstar, which named Chief Financial Officer Scott Di Valerio as chief executive last month, launched a beta version of its video streaming service in collaboration with Verizon Communications Inc (VZ.N) in December.
Coinstar's net income fell to $22.8 million, or 75 cents per share, in the fourth quarter, from $31.5 million, or $1.00 per share, a year earlier.
Revenue rose 8 percent to $564.1 million.
Core diluted earnings per share from continuing operations were 93 cents.
Analysts were expecting adjusted earnings of 73 cents per share on revenue of $580.2 million.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)
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