Coinstar Earnings No Tragedy for Investors
From the conference call on Thursday, CFO J. Scott Di Valerio said:
... We did report solid Q2 results today with revenue of $532 million, up 22%, as Paul said, really driven out of our Redbox business, which grew at 26%, according to same-store sales of 16.5%.
55% of bookings came from the Americas, 25% from EMEA and 20% -- excuse me, and 20% from Asia Pacific.
We've crossed the $1 billion mark in the first half of the year and well on the way to cross well over the $2 billion mark for the rest of the year as we go through the rest of the year. And it was only three years ago that we crossed the $1 billion mark for the first time as a company . . . .
What's the best play with Coinstar? There should be a very attractive trade coming up Monday and or Tuesday. Near the end of the day if still trading lower, sell out of the money puts.
Fear of continued losses tends to push portfolio insurance prices up dramatically, while at the same time, the stock should find support.
It's not one to get greedy with; hold on for a few days and as the implied volatility falls (hopefully with a nice dead cat bounce) exit out with a quick hit and run for profits.
Otherwise for longer term investors, the best play is to wait until we are closer to the next earnings release for an entry.
At the time of publication, the author held no positions in any of the stocks mentioned. P/>This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.