Outerwall Q4 Profit From Cont. Ops. Rises; To Launch $350 Mln Tender Offer

(RTTNews) - Outerwall Inc. (OUTR) reported that its fourth-quarter income from continuing operations increased year-over-year to $42.88 million or $1.55 per share, from $25.54 million or $0.83 per share, last year. Net income was $22.68 million or $0.82 per share, compared to $22.89 million or $0.75 per share, prior year. Core earnings per share from continuing operations was $1.68 for the quarter. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $1.22 for the quarter. Analysts' estimates typically exclude special items. Revenue increased year-over-year to $593.705 million, from $563.08 million. Analysts expected revenue of $596.09 million for the quarter.

On January 30, 2014, Outerwall's Board increased the share repurchase authorization by $500 million, bringing the total available for repurchases to approximately $650 million. In connection with this increased authorization, the Board also authorized a tender offer for $350 million of Outerwall's common stock through a modified Dutch auction that is expected to launch on February 7, 2014. The company expects to launch with a price range based on a 5-20% premium over the last reported sale price on Feb. 6. For the 2014 full year, Outerwall management expects: consolidated revenue between $2.358 billion and $2.498 billion; core earnings per share from continuing operations between $5.16 and $5.76. Analysts expect the company to report fiscal 2014 earnings per share of $5.77 on revenue of $2.45 billion.

For the 2014 first quarter, Outerwall management expects: consolidated revenue between $570 million and $600 million; and core earnings per share from continuing operations between $0.77 and $0.97. Analysts expect the company to report first-quarter profit per share of $1.29 on revenue of $607.06 million.