Earnings Preview: Coinstar, Starbucks, Verisign, Dolby Labs

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Some of the corporations scheduled to report its financial performance for the first three months of fiscal 2013 on Thursday include Coinstar, Inc. (NASDAQ:CSTR), Dolby Laboratories, Inc. (NYSE:DLB), Starbucks Corporation (NASDAQ:SBUX), Verisign, Inc. (NASDAQ:VRSN), and Orchard Supply Hardware Stores Corp (NASDAQ:OSH) (OTC:OSHSP).

Earnings Preview: Coinstar, Starbucks, Verisign, Dolby Labs

Coinstar, Inc. (NASDAQ:CSTR) provide automated retail solutions such as the Redbox DVD video game rental and the Coinstar coin-counting kiosks available in different locations. Based on data compiled by Bloomberg, the company is expected to report earnings of $0.86 per share and $580 million revenue for the first quarter for the current fiscal year. During the same period last year, the company recorded -$1.39 losses and $568 million revenue.

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For the fiscal 2013, the consensus estimate is $5.14 earnings per share and $2.4 billion revenue. Last year, the company posted $4.83 earnings and $2.2 billion revenue.

Analysts at Pacific Crest think that although Coinstar, Inc. (NASDAQ:CSTR) reports quarterly earnings result is in line or even beat consensus estimates slightly, it is an indication that the company’s movie rental business is slowing down, and forecasted it would miss estimates next quarter.

Wedbush Securities analyst Michael Pachter, projected that the company’s financial results this quarter would exceed the conservative high-end guidance, and will report $1.00 per share and $600 million revenue. Pachter also noted that since 2010, the company beat initial EPS guidance every quarter.

Dolby Laboratories, Inc. (NYSE:DLB) is one of the leading providers of products, services, and technology solutions for the entertainment industry. The company is scheduled to release its second quarter financial performance this year.

For the current quarter, the company’s guidance was to achieve earnings per share between $0.53 to $0.60 GAAP basis and its revenue will be around $240 million to $250 million. The consensus estimate of analysts was $0.64 earnings per share and $251.22 million revenue.

During the previous quarter, Dolby Laboratories, Inc. (NYSE:DLB) posted $51.3 million GAAP net income or $0.590 earnings per share and $236.6 million revenue.

For the full year 2013, the company expected to generate between $910 million to $950 million revenue compared with the consensus estimate of analysts at $918.50 million revenue.

Analysts expect Verisign, Inc. (NASDAQ:VRSN) to report strong financial results for the first quarter. Data from Bloomberg showed that the consensus estimate for the company’s earnings is $0.54 per share compared with the $0.42 EPS in the same period last year. The consensus revenue estimate is around $233 million vs. $205.7 million revenue in the same period a year ago.

For fiscal 2013, the average EPS and revenue estimates were $2.27 and $954 million, respectively. The Street recommended a buy for the shares of Verisign, Inc. (NASDAQ:VRSN) with a ratings score of B-.

Starbucks Corporation (NASDAQ:SBUX) is expected to report strong financial results for the second quarter. Analysts anticipated that the company will be able to deliver $0.48 earnings per share, higher than its $0.40 per share profit in the same period a year earlier. Its revenue is projected to be around $3.58 billion, an increase of 12 percent from its $3.2 billion revenue last year.

For the full fiscal 2013, analysts forecasted that the company will generate a profit of $2.17 per share and $14.89 billion revenue. Majority of analysts covering the stock of Starbucks Corporation (NASDAQ:SBUX) recommended a buy rating.

Meanwhile, Orchard Supply Hardware Stores Corp (NASDAQ:OSH) (OTC:OSHSP) is expected to report its final fiscal 2012 earnings performance on Thursday. The company just completed its spin-off from Sears Holdings Corp (NASDAQ:SHLD) and started as an independent public company last January.

The company recently released its fourth quarter 2012 preliminary net sales results ended February 2 of around $153.4 million compared with its $141.6 million net sales for the same period in 2011. For the fiscal 2012, Orchard’s preliminary net sales were around $657.6 million vs. $660.5 million net sale in 2011.

In February, the company provided an update regarding its efforts to improve its capital structure. The company increased its senior secured credit facility with Wells Fargo Capital Finance and Bank of America Corp (NYSE:BAC) to $145 million.  It has $40 million available cash and available credit. It also obtained a waiver from its current Term Loan Lenders.

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