Outerwall Q2 Profit Rises, Revenue Misses Estimates, Shares Fall - Update

(RTTNews) - Automated retail solutions provider Outerwall Inc. (OUTR), previously known as Coinstar Inc., Thursday said profit in the second quarter increased from the prior year, helped by higher revenues and lower taxes. However, revenue missed estimates and the stock fell nearly 9 percent in the extended trade.

Net income increased to $46.86 million or $1.64 per share from $36.88 million or $1.11 per share last year.

Excluding non-core adjustments of $0.27 per share, core earnings per share was $1.91, while it totaled $1.25 per share last year.

On average, 11 analysts polled by Thomson Reuters expected the company to report profit of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue rose to $554.23 million from $532.22 million last year, driven primarily by Redbox segment revenue of $478.5 million that grew 4.5 percent from last year. Analysts expected revenue of $564.22 million for the quarter.

Expenses for the quarter climbed to $22.63 million from $8.13 million while income tax expense fell to $847 thousand from $24.78 million. For the third quarter, Outerwall management expects core profit per share between $1.36 and $1.51 and consolidated revenue between $604 million and $630 million.

Wall Street expects the company to report third-quarter profit per share of $1.63 on revenue of $614.07 million.

For 2013, Outerwall management expects core profit per share between $5.76 and $6.26 and consolidated revenue between $2.372 billion and $2.475 billion. Analysts expect the company to report full year profit per share of $5.11 on revenue of $2.39 billion.

OUTR rose 2.1 percent to close at $65.30 on Thursday, but fell 8.9 percent in the extended trade.