Parent of Redbox Reports 4 Percent Revenue Climb
Wall Street is unimpressed with Outerwall's financial report, and the stock falls after the closing bell.
Outerwall, the newly named company that is the parent of the DVD-kiosk firm Redbox, reported Thursday that its quarterly net income rose 27 percent to $46.9 million on revenue that climbed 4 percent to $554.2 million.
Outerwall, which used to be known as Coinstar, said that its Rebox unit "eclipsed 50 percent of the physical rental market for the first time during the second quarter."
Revenue at Redbox rose 4.5 percent to $478.5 million in the quarter, while revenue at the coin-counting business was up less than 1 percent to $73.9 million.
Investors weren't impressed with the numbers. The stock rose $1.31 to $65.30 during the regular session but fell $2.30 after the closing bell when the company disclosed its second-quarter financials.