* Raises FY adj EPS view to $5.05-$5.55 from $4.91-$5.51
* First-quarter adj EPS $0.93 vs est $0.86
* Shares up 8 pct after the bell
By Chandni Doulatramani
April 25 Coinstar Inc raised its
full-year adjusted profit forecast as it bets on a slate of
movies scheduled to be released in the third quarter to boost
its Redbox video rental business, sending its shares up 8
percent after the bell.
Coinstar, which plans to change its name to Outerwall Inc,
acquired Redbox in 2008 for its DVD kiosk business, and it has
become its primary source of sales since then.
Redbox, which accounted for about 87 percent of Coinstar's
sales of $2.20 billion in 2012, offers self-service movie
rentals at about 43,700 kiosks, where consumers can rent or buy
movies and video games.
The movies scheduled in the third quarter are driving
Coinstar to raise its forecast, Wedbush Securities analyst
Michael Pachter told Reuters.
"The third quarter is the big one. It's going to be super
strong," he said.
He said he expected Coinstar to do well owing to highly
anticipated movies such as "Man of Steel", "Oblivion" and "Iron
Man 3". He said some people would also want to watch movies that
don't do well at the box office without spending too much.
"I even think some of the movies that flop in the theater
will do better on rental like "Jack the Giant Slayer" and
"Hansel and Gretel."
He said the box office was down 6 percent in the quarter,
and despite that Coinstar's revenue went up marginally.
Coinstar raised its full-year adjusted earnings forecast to
$5.05-$5.55 per share from $4.91-$5.51.
Analysts were looking for $5.09 per share, according to
Thomson Reuters I/B/E/S.
Coinstar's net income fell to $22.6 million, or 78 cents per
share, in the first quarter from $53.7 million, or $1.65 per
share, a year earlier.
Excluding items, the company earned 93 cents per share.
Revenue rose 1 percent to $574.7 million.
Analysts had expected adjusted earnings of 86 cents per
share on revenue of $579.4 million.
Coinstar also plans to change its ticker symbol on the
Nasdaq to "OUTR".
Coinstar shares, which have risen about 9 percent in the
last three months, were up 6 percent in after-market trading on
Thursday. They closed at $55.03 on the Nasdaq.