Coinstar wipeout
Posted: Thu Jan 13, 2011 9:51 pmAll those steel Canadian coins I've been plugging into their machines is paying off!! Stock price fell $14 in after hours trading.
Coinstar Cuts Q4, FY11 Outlook; Shares Plunge - Update
(RTTNews) - Automated retail solutions provider Coinstar, Inc. (CSTR), Thursday lowered its fourth-quarter and fiscal year 2011 outlook, due to lesser than expected demand for new releases as well as the temporary imbalances in available titles across the kiosk network. Results for both the fourth quarter and full year are currently expected to come in short of analysts' estimates. Following the news, Coinstar shares plunged more than 25% in after-hours trade.
The Bellevue, Washington-based company currently expects earnings from continuing operations in the range of $0.65 to $0.69 per share, compared to prior guidance range of $0.79 to $0.85 per share. On average, 16 analysts polled by Thomson Reuters expect the company to report earnings of $0.84 per share for the quarter. Analysts' estimates typically exclude special items.
Earnings outlook include a reduction of $0.02 per share due to the expected increase in diluted share count of 1.3 million as a result of convertible debt and option exercise dilution. Earnings are also to be impacted by $0.02 per share due to expected higher share based expense related to the higher share price at the end of the quarter.
Revenues for the fourth-quarter are currently expected at about $391 million, compared with previous guidance in the range of $415 million to $440 million. Analysts estimate revenues of $426.64 million for the quarter.
Coinstar noted that it had anticipated stronger performance from the titles scheduled for release during the fourth quarter holiday season, particularly from the slate of 28-day delay and higher-priced Blu-ray titles. Nevertheless, the demand for new releases were weak.
In addition, the company's DVD kiosk division Redbox removed its older inventory early in anticipation of better demand for new releases. Further, redbox consumers utilized 'rent and return anywhere' service to a higher level than expected, which caused temporary imbalances in available titles across the kiosk network.
Paul Davis, CEO of Coinstar, commented on the guidance cut, "This was redbox's first holiday season with 28-day delayed titles, and we underestimated the impact that the delay would have on demand during the fourth quarter. We also expected much better performance from Blu-ray and had purchased to a higher level of demand. While consumer visits to the kiosks remained strong, the number of movies per visit, or basket size, was lower than planned."
The company also lowered its outlook for full year 2011 and now expects earnings from continuing operations between $2.60 and $3.10 per share, down from previous expected range of $3.00 to $3.50 per share. Analysts currently estimate earnings of $3.34 per share for 2011.
Full-year 2011 revenues are currently estimated between $1.70 billion and $1.85 billion, down from the previous range of $1.80 billion to $1.95 billion. Analysts estimate revenues of $1.88 billion for the quarter.
Coinstar Cuts Q4, FY11 Outlook; Shares Plunge - Update
(RTTNews) - Automated retail solutions provider Coinstar, Inc. (CSTR), Thursday lowered its fourth-quarter and fiscal year 2011 outlook, due to lesser than expected demand for new releases as well as the temporary imbalances in available titles across the kiosk network. Results for both the fourth quarter and full year are currently expected to come in short of analysts' estimates. Following the news, Coinstar shares plunged more than 25% in after-hours trade.
The Bellevue, Washington-based company currently expects earnings from continuing operations in the range of $0.65 to $0.69 per share, compared to prior guidance range of $0.79 to $0.85 per share. On average, 16 analysts polled by Thomson Reuters expect the company to report earnings of $0.84 per share for the quarter. Analysts' estimates typically exclude special items.
Earnings outlook include a reduction of $0.02 per share due to the expected increase in diluted share count of 1.3 million as a result of convertible debt and option exercise dilution. Earnings are also to be impacted by $0.02 per share due to expected higher share based expense related to the higher share price at the end of the quarter.
Revenues for the fourth-quarter are currently expected at about $391 million, compared with previous guidance in the range of $415 million to $440 million. Analysts estimate revenues of $426.64 million for the quarter.
Coinstar noted that it had anticipated stronger performance from the titles scheduled for release during the fourth quarter holiday season, particularly from the slate of 28-day delay and higher-priced Blu-ray titles. Nevertheless, the demand for new releases were weak.
In addition, the company's DVD kiosk division Redbox removed its older inventory early in anticipation of better demand for new releases. Further, redbox consumers utilized 'rent and return anywhere' service to a higher level than expected, which caused temporary imbalances in available titles across the kiosk network.
Paul Davis, CEO of Coinstar, commented on the guidance cut, "This was redbox's first holiday season with 28-day delayed titles, and we underestimated the impact that the delay would have on demand during the fourth quarter. We also expected much better performance from Blu-ray and had purchased to a higher level of demand. While consumer visits to the kiosks remained strong, the number of movies per visit, or basket size, was lower than planned."
The company also lowered its outlook for full year 2011 and now expects earnings from continuing operations between $2.60 and $3.10 per share, down from previous expected range of $3.00 to $3.50 per share. Analysts currently estimate earnings of $3.34 per share for 2011.
Full-year 2011 revenues are currently estimated between $1.70 billion and $1.85 billion, down from the previous range of $1.80 billion to $1.95 billion. Analysts estimate revenues of $1.88 billion for the quarter.