The Dividend Daily

Coin-counting machine maker Coinstar, Inc. (CSTR) said late Thursday that its third quarter profit jumped sharply from last year, helped by a big one-time gain.

The Bellevue, Washington-based company reported third quarter net income of $41.4 million, or $1.34 per share,compared with just $4.5 million, or 16 cents per share, in the year-ago period. This year’s results included a $1.05 per share gain from the sale of its entertainment business.

Revenue rose 46% from last year, to $296 million.

On average, Wall Street analusts expected earnings of 25 cents per share, on higher revenue of $331.9 million.

Looking ahead, the company cut its full-year revenue outlook to a range of $1.1 billion to $1.17 billion down from a prior view for $1.23 billion to $1.3 billion $1.27 billion. Analysts currently expect $1.27 billion.

Coinstar shares are falling 7.37% in premarket trading Friday.

The Bottom Line
Shares of CSTR are off its 52-week highs of $38. The stock has technical support in the $25 price area. If the shares can rebound from today’s dip, we see overhead resistance around the $35 price level. We do not currently rate this non-dividend paying stock, but we do follow the company closely.

Coinstar, Inc. (CSTR) does not currently pay a dividend.

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