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Coinstar Earnings Worth More Than Competing Against Netflix (CSTR, NFLX, VZ)

Coinstar, Inc. (NASDAQ: CSTR) may have announced a move against Netflix, Inc. (NASDAQ: NFLX) today with the planned second-half launch of a streaming content joint venture with Verizon Communications Inc. (NYSE: VZ).  Its earnings report is worth far more for…

By Jon C. Ogg
Published February 6, 2012, 4:37pm ET · 1 min read

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Coinstar, Inc. (NASDAQ: CSTR) may have announced a move against Netflix, Inc. (NASDAQ: NFLX) today with the planned second-half launch of a streaming content joint venture with Verizon Communications Inc. (NYSE: VZ).  Its earnings report is worth far more for investors than the news this morning.  Shares closed up 1.8% at $50.56 and now shares are up another 13% at $57.00 in the after-hours session.

Sales rose to $520.5 million and earnings hot $1.00 per share (unsure if items included).  The consensus targets were $0.64 EPS and $498.05 million according to Thomson Reuters data.

Coinstar sees guidance of $0.76 EPS to $0.91 EPS on $530 million to $555 million in sales.  Thomson Reuters has estimates of $0.86 EPS and $514.54 million. 

Beating earnings estimates and raising guidance is usually a very welcoming sign for investors. 

For 2012, the guidance is $3.80 EPS to $4.30 EPS on $2.07 billion to $2.25 billion in sales.  Thomson Reuters has estimates of $3.86 EPS and $2.17 billion in sales.

As a reminder, Coinstar is profitable while many are not expecting Netflix to remain profitable.

 

Contact [email protected] for any questions or corrections.

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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