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Coinstar Q1 Asj. Profit Beats View, Lifts Earnings Outlook; Proposes Name Change

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Shares of Coinstar Inc. (CSTR: Quote) gained more than 8 percent in extended trade Thursday after the automated retail solutions provider's adjusted earnings per share for the first quarter beat analysts' estimates and the company raised its earnings outlook for fiscal 2013.

Separately, Coinstar said it plans to seek stockholder approval to change its name to Outerwall Inc. at the company's annual meeting of stockholders to be held on June 27.

Coinstar noted that the name change reflects its evolution from a single coin-counting kiosk business into multiple automated retail businesses. The company's core businesses will retain their current brand names, Redbox and Coinstar.

After the new name is formally adopted, Coinstar plans to change its Nasdaq ticker symbol from "CSTR" to "OUTR" and will announce the date when trading under the new symbol will commence.

The Washington-based Redbox movie-rental kiosks operator's profit for the first quarter declined 58 percent, while revenues edged up slightly.

Coinstar's net income for the first quarter was $22.60 million or $0.78 per share, down from $53.70 million or $1.65 per share in the year-ago period.

Excluding items, core earnings from continuing operations for the quarter were $0.93 per share, compared to $1.39 per share a year ago. On average, eleven analysts polled by Thomson Reuters expected earnings of $1.17 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 1 percent to $574.69 million from $568.18 million in the same period last year. Analysts had a consensus revenue estimate of $545.03 million.

Redbox revenue grew 1 percent to $507.92 million, primarily due to new kiosk installations. Coin segment revenues edged up slightly to $65.38 million. Revenue from new ventures more than tripled to $1.38 million.

Looking ahead to the second quarter, Coinstar expects core earnings from continuing operations of $0.90 to $1.05 per share on revenues of $555 million to $580 million. Analysts expect the company to report earnings of $1.25 per share for the quarter on revenues of $583.89 million.

For fiscal 2013, Coinstar now forecasts core earnings from continuing operations of $5.05 to $5.55 per share on revenues of $2.385 billion to $2.545 billion. Earlier, the company projected core earnings from continuing operations of $4.91 to $5.51 per share on revenues between $2.375 billion and $2.555 billion. Analysts expect earnings of $5.14 per share for the year on revenues of $2.42 billion.

CSTR closed Thursday's regular trading session at $55.03, up $1.77 or 3.32 percent on a volume of 1.63 million shares. In after-hours, the stock further gained $4.50 or 8.18 percent to $59.53.

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by RTT Staff Writer

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