UPDATE 1-Redbox owner raises forecast ahead of DVD release of blockbusters
(Adds forecast, estimates, shares)
May 1 (Reuters) - Outerwall Inc, operator of Redbox video rental kiosks, reported better-than-expected results largely due to a strong slate of movie releases on DVDs in the first quarter, and the company raised its full-year earnings forecast.
Shares of the company, which also operates Coinstar gift card-for-coins kiosks and ecoATM e-waste recycling kiosks, rose 3 percent in extended trading.
Outerwall is expected to benefit from the release of a number of blockbuster movies on DVDs in the second half of the year.
Several blockbuster movies of 2014, such as "Captain America: The Winter Soldier," "Godzilla" and "The Amazing Spider-Man 2," are slated to release in DVD formats starting mid-August.
The company, whose main rival is Netflix Inc, said it expected rentals and revenue per kiosk to rise in the second half.
Outerwall raised its adjusted earnings forecast to $6.68-$7.18 per share for the year ending December from $5.16-$5.76.
The company said it now expected revenue to be between $2.38 billion and $2.49 billion. It had earlier forecast revenue of $2.36 billion to $2.50 billion.
Analysts on average were expecting earnings of $6.20 per share on revenue of $2.41 billion, according to Thomson Reuters I/B/E/S.
Outerwall's net income rose to $23.2 million, or 94 cents per share, in the first quarter ended March 31 from $22.6 million, or 78 cents per share, a year earlier, when the company was known as Coinstar.
Excluding items, Outerwall earned $1.27 per share.
Revenue rose 4.7 percent to $600.4 million. Rentals in the Redbox business, under which the company offers movie and video games, rose 1.2 percent to 200 million.
Analysts had expected a profit of 93 cents per share on revenue of $586.7 million.
Outerwall's shares closed at $67.37 on the Nasdaq on Thursday. (Reporting by Aurindom Mukherjee and Lehar Maan in Bangalore; Editing by Kirti Pandey)
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