Google Inc Jumps On solid Earnings, Coinstar Soars On Boosted Earnings Outlook (GOOG, CSTR)
Coinstar, Inc. (NASDAQ:CSTR) shares jumped 12.54% to $69 in the pre-open trading after the after the company raised its financial outlook for the first quarter and full-year 2012. The increased guidance was driven primarily by stronger than anticipated consumer demand at Redbox throughout the quarter. The company expects first quarter earnings from continuing operations in a range of $1.62 to $1.66 per share, and core earnings from continuing operations in between $1.36 to $1.40 per share. Previously, the company expected first-quarter core earnings of $0.76 to $0.91 per share.
The company also updated its first quarter revenue guidance to a range of $567.0 million to $569.2 million from prior estimate of $530 million to $555 million. Analysts currently estimate earnings of $0.90 per share on revenues of $537.66 million for the quarter. Additionally, the company also updated its full year 2012 guidance and now expects core earnings from continuing operations of $4.40 to $4.80 per share. Revenues for the year are expected in the range of $2.155 billion to $2.280 billion. Analysts expect earnings of $4.09 per share and revenues of $2.22 billion.
Google Inc (NASDAQ:GOOG) shares gained in the pre-market session after the company reported a surge in its first quarter earnings and also plans to create a new class of stock. The 61% increase first-quarter profit was due to a rise in paid advertising clicks. The company posted a first quarter profit of $2.89 billion, or $8.75 a share, as compared to $1.8 billion, or $5.51 a share, in the year-ago period. Excluding stock-based compensation, per-share profit rose to $10.08 from $8.08, well above analyst estimate of $9.65. Total revenue was up 24% to about $8.14 billion, slightly lower than the $8.15 billion expected by analysts after meeting traffic-acquisition costs which represented 25% of advertising revenue.
Additionally, the company also announced a new stock structure that will keep the company firmly under the control of its co-founders. The company plans to introduce a new class of stock in a 2-for-1 stock split and the shares will be distributed through a stock dividend to existing shareholders. Google’s board of directors had approved the proposal, which would preserve the corporate structure that will help Google to remain focused on the long term. The shares of the company added 0.49% to $654.20.