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175_90_coinstar_logoRedbox is still growing, but its parent company Coinstar has revealed much lower-than-expected fourth-quarter sales.
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The company’s numbers disappointed investors and sent Coinstar shares tumbling around 8 percent yesterday.
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Coinstar posted sales of $564 million in the fourth-quarter of 2012, which was 8 percent higher than the same period in 2011, but still below the $580 million that investors were hoping for.

Pacific Crest analyst Andy Hargreaves said that the long-term prospects for the DVD rental business is not optimistic. Said Hargreaves:

 “Coinstar’s Q4 results and Q1 guidance suggest further deterioration in demand for DVD rentals, which we continue to view as a secular shift that is unlikely to change,”

What do you think, Insiders? Has Redbox peaked already?

[via Investor’s Business Daily]

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