Wedbush Raises Price Target on Coinstar (CSTR), Sees Possible EPS of $4 in FY12
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Price: $20.10 --0%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Outperform rating on shares of Coinstar (NASDAQ: CSTR) and is raising its price target from $62 to $72 as the company's Q4:10 inventory problems look to be resolved.
The company posted solid Q1 results with revenue of $424 million and EPS of $0.46, which tops the Streets estimates of $409 million and $0.22.
CSTR updated its FY11 guidance to a revenue range of $1.73-$1.85 billion and an EPS range of $2.75-$3.10. It also released its Q2 guidance with a revenue range of $430-$450 million and an EPS range of $0.76-$0.86.
As a result the firm is maintaining its FY11 revenue estimate of $1.85 billion but is raising its EPS estimate from $3.10 to $3.16. Wedbush is also introducing its FY12 estimates at $2.1 billion and $3.95.
The firm believes that CSTR will be able to earn over $3 in FY11 and could reach $4 by FY12 if trends remain in tact.
Wedbush comments that, "So long as its inventory issues remain in check, we believe Coinstar is positioned to deliver earnings above the high end of its guidance in 2011, as we expect contribution from new kiosks and anticipate normal ramp up of the installed base. Kiosk growth implies revenues can grow by over $200 million next year, and contribution margin of 20% would place EPS over $4.00 per share."
For more ratings news on Coinstar click here and for the rating history of Coinstar click here.
Shares of Coinstar closed at $51.41 yesterday.
The company posted solid Q1 results with revenue of $424 million and EPS of $0.46, which tops the Streets estimates of $409 million and $0.22.
CSTR updated its FY11 guidance to a revenue range of $1.73-$1.85 billion and an EPS range of $2.75-$3.10. It also released its Q2 guidance with a revenue range of $430-$450 million and an EPS range of $0.76-$0.86.
As a result the firm is maintaining its FY11 revenue estimate of $1.85 billion but is raising its EPS estimate from $3.10 to $3.16. Wedbush is also introducing its FY12 estimates at $2.1 billion and $3.95.
The firm believes that CSTR will be able to earn over $3 in FY11 and could reach $4 by FY12 if trends remain in tact.
Wedbush comments that, "So long as its inventory issues remain in check, we believe Coinstar is positioned to deliver earnings above the high end of its guidance in 2011, as we expect contribution from new kiosks and anticipate normal ramp up of the installed base. Kiosk growth implies revenues can grow by over $200 million next year, and contribution margin of 20% would place EPS over $4.00 per share."
For more ratings news on Coinstar click here and for the rating history of Coinstar click here.
Shares of Coinstar closed at $51.41 yesterday.
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