Piper Jaffray Reports Coinstar Is Positioned To Hit Lowered Estimates

In a report published by Piper Jaffray, Coinstar's CSTR Q1 DVD schedule is solid but patchy.

Piper Jaffray reported that, with most of Q1 completed, it believes Redbox is positioned to hit lowered estimates. “Our analysis shows solid box office revenue of DVDs released to Redbox in Q1, up 29% y/y, but the release schedule is somewhat spotty within the quarter. In fact, DVDs released in the month of Feb. only represented 13% of titles from a box office revenue perspective. The bigger issue in the quarter is the impact on gross margin from poor Q4 inventory management, which we believe the company has largely corrected, but is impacting Q1 EPS.”

Coinstar closed on Friday at $44.38.