NEWS: Outerwall Inc. reported Thursday that its net income grew more than twofold in the third quarter. The company benefited from a one-time gain related to the acquisition of its ecoATM business. In addition, its Redbox DVD rental kiosks and Coinstar coin-counting machines posted improved revenue growth. Its latest results trumped Wall Street estimates, advancing its shares 6.5 percent in after-hours trading.
DETAILS: Redbox revenue totaled $491.7 million, an increase of 7 percent from the prior-year quarter. Coinstar revenue increased about 3 percent from a year earlier to $79.6 million as the average transaction size grew 5.5 percent. Outerwall also got a boost from its acquisition of the ecoATM business in July.
NUMBERS: Net income jumped to $82.7 million, or $2.95 per share, in the three months ended Spet. 30. That compares with net income of $36.8 million, or $1.14 per share, in the prior-year quarter. Excluding the impact from a gain on previously held equity interest in ecoATM, Outerwall's earnings amounted to 97 cents per share. Analysts polled by FactSet expected earnings of 88 cents per share on that basis. Revenue grew 9 percent to $587.4 million from $537.6 million. Analysts had forecast revenue of $575.7 million.
FUTURE: Outerwall says it will return 75 percent to 100 percent of free cash flow to shareholders, initially in the form of share buybacks. It plans to buy back $150 million in shares over the course of the current quarter and into the first quarter of next year.
STOCK: Shares in the Bellevue, Wash., company ended regular trading up 26 cents at $61.98. The stock added $4.02 to $66 in after-hours trading. It is up 19 percent this year as of Thursday's close.
- Consumer Discretionary
- Company Earnings