Coinstar Drops On Earnings Announcement (CSTR)

At last check shares of Coinstar were trading over 5% lower than the close on heavy volume. Coinstar CSTR dropped today after reporting earnings of $0.68 vs $0.68 consensus. Coinstar also reported revenues of $390.8M versus the $393.31M Street estimate. Coinstar CSTR guided Q1 GAAP EPS of $0.15-0.25 versus $0.57 estimatess; Coinstar guides revenues of $400-425M versus the $404.23M Street consensus. Coinstar announced financial results for the fourth quarter and full year ended December 31, 2010. "We grew our fourth quarter revenue 31% over the prior year, and while this was not in line with our expectations, we still delivered $2.03 in earnings per share for the full year," said Paul Davis, chief executive officer of Coinstar, Inc. "We have taken definitive steps to correct the issues we encountered with our redbox business in the fourth quarter and will be tracking progress closely. Our coin business remains solid with same store sales growth of approximately 10% and redbox increased its unit market share to 29.8%. We remain optimistic about our core businesses as well as future opportunities with new automated retail concepts and we are committed to driving continued profitable growth."