Coinstar Beats Up on Analysts Yet Again

Coinstar (Nasdaq: CSTR  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Coinstar beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share grew significantly.

Gross margins increased, operating margins shrank, net margins grew.

Revenue details
Coinstar logged revenue of $520.5 million. The 16 analysts polled by S&P Capital IQ foresaw a top line of $498.5 million. Sales were 33% higher than the prior-year quarter's $390.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.00. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. GAAP EPS of $1.00 for Q4 were 186% higher than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.7%, 100 basis points better than the prior-year quarter. Operating margin was 10.5%, 50 basis points worse than the prior-year quarter. Net margin was 6.1%, 310 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $517.8 million. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $3.91.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 542 members out of 633 rating the stock outperform, and 92 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Coinstar a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coinstar is outperform, with an average price target of $63.43.

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