Investment and securities firm Piper Jaffray sees strong market conditions for Coinstar’s Redbox unit, and has consequently raised its estimates for Coinstar. According to trading site Benzinga, PJ Analysts Michael Olson and Andrew Murphy have raised their CY11 DVD EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin estimate to 19.5% from 18.9%. This upwards revision leads to an increase of Coinstar EPS (Earnings Per Share) from $2.57 to $2.75. Said the analysts:
“With retail rental store closures, a growing kiosk footprint, and deals in place with all major content owners, Redbox is positioned to see material revenue growth and margin expansion over the next several years.”
Do you agree with the Piper Jaffray analysts’ rosy outlook on Redbox, Insiders? The home video marketplace is a tough one, and it’s just getting tougher. What will the next few years bring for Redbox, and will it be up to the challenge?