Overall, Coinstar earnings were up 13 percent over Q2 2011 and revenue rose 22 percent to $532.2 million. Redbox continues to contribute the lion’s share of Coinstar’s earnings, with revenue growth of 26 percent.
Analysts had expected Coinstar to turn in an 18 percent increase in earnings and a total of $545 million in revenue. Coinstar stock was accordingly punished in after-hours trading when it dropped 15 percent.
Coinstar CEO Paul Davis said the following about his company’s performance this quarter:
Coinstar’s second quarter was marked by strong bottom line performance and significant progress against key initiatives positioning the company for long-term growth,
Davis didn’t reveal too much about Redbox’s upcoming streaming venture with Verizon, Redbox Instant. Said Davis:
As we get ready to go to market, we’ll give more details . . . It’ll become more clear what the product offering will be. I feel good and confident about what we’ll be bringing. It will be content that counts.
What do you think about Redbox’s performance this quarter, Insiders? Did the company’s shares deserve to be punished by The Street?
[via The Hollywood Reporter]