Shares of DVD rental kiosk operator and coin-counting machine operator Coinstar (CSTR) are off $3.60, or almost 7%, at $48.50, in late trading, after the company this afternoon reportedQ4 revenue that missed analysts’ estimates, but beat on the bottom line, and projected this quarter’s results below consensus, as well as the full year’s revenue.
Revenue in the three months ended in December rose 8.4%, year over year, to $564 million, yielding EPS of 93 cents.
Analysts had been modeling, on average, revenue of $581 million and EPS of 73 cents.
CEO Paul Davis said the company was “pleased with our performance in 2012,” and cited “substantial progress” on “growth initiatives” such as the company’s streaming video tie-up with Verizon Communications (VZ), “Redbox Instant by Verizon.”
For the current quarter, the company sees revenue of $568 million to $593 million, and EPS of 77 cents to 92 cents, below the average estimate for $629 million and $1.22 per share, according to FactSet.
For the full year, Coinstar sees revenue of $2.38 billion to $2.6 billion, and EPS of $4.91 to $5.51, which is roughly in line with the average $2.498 billion estimate on the Street and slightly better than the average $5.15-per-share EPS estimate.
Coinstar‘s newer projects, such as Redbox Instant, compete with established streaming video offerings from those such as Netflix (NFLX) and Amazon.com (AMZN).
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