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Analysts Bullish on Redbox

RedBox-LogoThere’s been a lot of uncertainty surrounding Redbox’s future on Wall Street lately, but several prominent analysts think that good things are still coming for the kiosk vendor.

Eric Wold with B. Riley & Co. thinks that when Redbox reports its second quarter earnings on July 30, the news will be good at least partially because of the quarter’s strong box office revenue.

Said Wold:

“We believe this will drive stronger Redbox revenue and margin flow through the recent price increase. We are now assuming a 5.8% increase in average kiosk revenue and pre-tax earnings margins of 20.8% vs. prior estimates of a 0.3% [kiosk revenue] uptick and 19.4% pre-tax margins,”

Wedbush Securities analyst Michael Pachter thinks that Redbox may well experience significant growth through the end of 2015, also abetted by a strong box office. Said Pachter:

“Given that, we think 2015 revenue is likely to grow by more than the 3.4% we have modeled . . . Q4 likely [will] wildly exceed our estimates given the strong summer release slate.”

How do you think Redbox’s quarterly financials will go?

[via Home Media Magazine]

3 Responses to “Analysts Bullish on Redbox”

  1. Visitor [Join Now]
    Danofive0 [visitor]

    I really don’t know how RedBox is still with us?
    I mean…. Two things. things….
    1. You need to take it back in 24 hrs..
    2. The Price. Lets add the time you spend to take it back. Gas.
    With NetFlix in the mail. Three out at a time. I get 18- 20 Disc a month
    And it comes out to. Less then a buck a disc. No gas to take them back.
    No 24 Hr bit.
    I don’t see RedBox doing to well down the road…
    And with Streaming..
    Yes millions of us still like the disc in hand… Me for one…
    But NetFlix is the way to go for that……
    But then, that’s just me…

    • Visitor [Join Now]
      jamie [visitor]

      The gas thing to me is only a big deal if you don’t live near a box. Luckily i have 5 boxes within 2 miles of my house (2 Walmart, 2 Walgreen, 1 CVS). I don’t need 18-20 discs a month because frankly there’s not 18-20 movies or tv series i want to watch on top of what i dvr.

      Redbox is more appealing to the once a week renter who wants to be a little more selective about what they rent and know it’s only going to be current releases. Plus they give you enough freebies and rent 1 get 1 free that most times I’m not paying a dime to rent a movie.

      Instead of it being a 24 window they really should make it that you have to return it by midnight of the following day. For example let’s say i go out tonight to get groceries at 9 pm and grab a rental as i’m leaving the store. That rental is due back the next night by 9. By the time I come home and eat dinner I probably don’t have time to finish it and get it back to the box by 9. So based on that I just won’t rent it at all at that time.

      • Visitor [Join Now]
        Danofive0 [visitor]

        Yes. If you are just a rent a movie now and then. And have a RedBox near you.
        Then that maybe the way to go…
        Me I just like mt NetFlix…To the house….
        But that is just me…..