The exceptional rise in Coinstar’s stock was a result of several factors. The company had reported better-than-expected results and an agreement to buy the DVD business of NCR Corp. (NYSE: NCR) for $100 million. Moreover, it had agreed to form a joint venture with Verizon Communications Inc. (NYSE: VZ) in order to get a foothold in the expanding video-streaming market and to strengthen its industry-leading kiosk business. The agreements will strengthen the position of the company for further expansion. 

 

The company reported fourth-quarter net income of $31.5 million or $1 per share, from $11.7 million or 35 cents per share, a year earlier, including a loss on discontinued business. Analysts had forecast earnings of 65 cents. The company’s revenue went up 33 percent to $520.5 million against analysts’ expectations of $498 million.

 

With the NCR agreement, Redbox will be able to increase its current total of 35,400 kiosks by 10,000 more vending machines along with software and services. Redbox will have a 35 percent stake in its joint venture with Verizon. It will invest an initial amount of $14 million in the venture and may add more.