Coinstarearnings blew past expectations, sending the stock soaring after-hours. The company reported earnings per share of $1 on $520 million in revenue. Wall Street had expected just 65 cents a share on $498 million in revenue.
The big driver was the company’s biggest division, DVD Rental service Redbox, which showed 39.5 percent revenue growth. Perhaps more important, the company’s guidance for the current quarter was better than expected. The company is continuing to double down on entertainment — it is buying the assets of NCR’s entertainment business.
These better-than-expected results come on the heels of Coinstar announcing its partnering with Verizon to launch an online content service to go head to head with Netflix .
The joint venture will be a subscription service that offers streaming and downloads, and can be partnered with Redbox’s DVD rentals. The new business will be 65 percent owned by Verizon, which is looking to expand its video play beyond Verizon FiOs, which has a limited geographical footprint. Meanwhile, Coinstar, which has been talking about such a product for years, gets Verizon’s expertise with streaming when it finally moves online.Page 1 of 3 | Next Page