(Adds forecast, estimates, shares)
May 1 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
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
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
The company, whose main rival is Netflix Inc, said
it expected rentals and revenue per kiosk to rise in the second
Outerwall raised its adjusted earnings forecast to
$6.68-$7.18 per share for the year ending December from
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
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
(Reporting by Aurindom Mukherjee and Lehar Maan in Bangalore;
Editing by Kirti Pandey)