Shares of Redbox Parent Soars After Company Issues Upbeat Forecast
Shares of Redbox parent Coinstar jumped 14 percent in after-hours trading on Thursday, after the company offered preliminary first-quarter results that exceeded the forecasts of analysts.
Coinstar said it expects to post revenue of from $567 million-$569.2 million and a per-share profit of from $1.62-$1.66. Analysts, though, were expecting only $539 million in revenue and less than a dollar in per-share profit.
The news was good in itself, but was also seen as a sign that studio-imposed delays for access to newly released DVDs by Fox and Universal Pictures haven't dented Redbox, which is the driving force of Coinstar's business. The preliminary results also indicate consumer acceptance of a recent price increase for Redbox.
The company also cited for its better-than-expected forecast popular film titles like Moneyball, Puss in Boots, Abduction, Mr. Popper's Penguins and In Time.
Coinstar shares fell 3 percent to $61.31 during the normal session but rose $8.51 to $69.82 after the closing bell, a price that exceeds the company's 52-week high of $65.