Diamonds and Dogs

04/13/2012

Infosys Ltd (INFY)

Infosys Ltd an Indian IT service company sank today, down 13.58% at $49.06. The drop was brought on by the full year forecasts falling well below analysts' expectations. Infosys stated a full year EPS of $3.12-$3.17 and revenue of $7.55 billion-$7.69 billion. Wall Street's expectations were $3.32 and $7.79 billion, respectively. Investors headed for the sidelines seeing the poor earnings results. It also didn't help to hear CEO S.D. Shibulal state, "The year ahead looks challenging for the IT services industry, with slow recovery in the global markets." Poor info will leave Infosys heading into the weekend trying to shake off the loss.

Coinstar (CSTR)

Coinstar is cashing in today, up 8.09% at $66.27. Coinstar's earnings report was excellent; the company moved its expected revenue range from $530 million to $555 million, to a range of $567 million to $569 million. Analysts' estimates for EPS were $0.90, which was blown out of the water with Coinstar stating it expected $1.36 to $1.40 per share. The company stated that its other division Redbox (movie rentals) did well with the popularity of movies such as Moneyball, Puss in Boots, and 50/50. However, Coinstar acknowledges that the movie business is tough with competitors such as NetFlix, Amazon, and Apple. Redbox seems to be in a Hunger Games type situation with everyone battling to be the last standing. Today, Charlie Sheen might say that Coinstar is Winning!

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