The leading provider of DVD rental kiosks generated 2Q profits of $26.7M, double what it delivered in the same period last year, on revenues of $435.2M, up 27%. Earnings at continuing operations came in a 98 cents a share, beating the 95 cents that analysts expected. But they also thought that revenues would be slightly higher at $437.7M. That contributed to a 1.6% drop for Coinstar shares in after-market trading even though the company also authorized a $250M stock buyback. “Our solid financial position enables us to prudently invest in our business and opportunistically return capital to our shareholders,” CFO J. Scott Di Valerio says. Redbox said today that it will rent video games at 5,000 additional kiosks beginning Aug. 1 bringing its total to 27,000.


Hmm. Profits are double what they were a year ago, revenues are up 27%, the company authorizes a $250M stock buy-back, but since some random “analyst” thought they might do even better, the shares take a slight tumble.
That makes no sense anywhere other than Wall Street. It’s like saying “well, I was wrong in my analysis, so instead of man’ing up and admiting my analysis was wrong, I’m just going to value your shares lower.” Wtf?!
RedBox really is awesome. I just started using the kiosks a month ago and have saved well over $200 vs theater ticket proces I would’ve paid for what were mostly mediocre movies (ie Narnia, Hereafter, Battle: LA, source code, sucker punch, etc.) Long live RedBox, LOVE the $1 rental price!
>mostly mediocre movies (ie Narnia, Hereafter, Battle: LA, source code, sucker punch, etc.)
Re: “Sucker Punch” — Yes, the movie is like a long, awful, insane episode of the old Carol Burnett show with really depressing skits, but if you pretend the fantasy scenes are commercials during the show with no connection to the show itself and make up your own narrative to create a totally new backstory to the individual fantasy scenes, then it’s a real cool experience with beatufiul girls having big adventures in sexy clothes. But, you know, it’s like an art project, you have to work at it.