Coinstar Ups Guidance on Strong Performance of Redbox
The company proposes to change its name to "Outerwall" and its ticker symbol to "OUTR."
Shares of Coinstar were up 7 percent after the closing bell when it reported quarterly earnings and offered strong guidance mostly on the back of its Redbox DVD and video game kiosks.
Coinstar also said Thursday that it will seek stockholder approval to change the company name to "Outerwall" and, if approved at the June 27 meeting, its ticker symbol would change from "CSTR" on Nasdaq to "OUTR."
Coinstar said it expects to earn as much as $5.55 a share this year, which is four cents more than it had forecast.
In the first quarter, Coinstar earned $22.6 million, down from $53.7 million a year ago on revenue that rose 1 percent to $574.7 million. Redbox accounted for $507.9 million in revenue, far outperforming the company's coin-counting business.
The company also reported a $19.5 million loss on its formation of Redbox Instant by Verizon, a new streaming service meant to compete with Netflix.
As for the name-change proposal, CEO Scott Di Valerio said its purpose is to move the company beyond its roots of automated coin counting.
"Outerwall unifies our growing portfolio of products and services under one name and reflects the company's ongoing commitment to think beyond the limits to make a better every day possible for everyone," he said. "More than two decades ago, Coinstar pioneered self-service coin counting, and 10 years later, Redbox reimagined a new way to deliver low-cost entertainment through DVD kiosks. We continue to develop solutions that are simple, convenient and affordable."
Coinstar shares rose $1.77 during the regular session to $55.03 and were up another $3.67 after the closing bell.