Not growing, but printing cash Despite concerns regarding future demand for its DVD rental kiosks, Outerwall actually beat analyst projections in its fiscal third-quarter report. Adjusted earnings per share came in at $0.97 per share -- $0.09 better than analyst estimates, but well under the year-ago haul of $1.26 per share. Sales still rose nearly 10% from the same quarter of 2012, and the company was satisfied with Redbox, Coinstar, and its newly acquired ecoATM -- a kiosk that buys personal electronics for cash. The company announced its plans to return nearly all of its free cash to shareholders. That is a victory for Jana and perhaps a harbinger of more cooperation between the activist fund and Outerwall management. So what else is Jana pushing for? More levers to pull Jana initiated its position because it believes the company is fundamentally undervalued. That value, it suggests, could be realized by better capital allocation, such as cash back to shareholders, shutting down Redbox Instant (a failed attempt at taking market share from Netflix, Amazon.com, and Hulu), and/or shuttering a coffee kiosk venture. Other options include the possible sale of the company. Management has so far made no comment that it plans to pull the plug on Redbox Instant, but it makes sense. The deal with Verizon was never particularly advantageous to Outerwall, and the giants in the streaming business were bound to keep the companies' venture grounded. For investors, there is plenty of reason to feel good about the company. Redbox and Coinstar continue to generate loads of cash, and management seems now convinced that the destination for that money is back to shareholders. Over the long run, DVD demand will surely decrease, but there is no immediate end to this business. Outerwall and its investors will continue to see plenty of cash coming in the door. Furthermore, investors should be encouraged by management's willingness to discuss the strategic alternatives to the business. Whether the company sells itself for a nice, quick premium or can boost its already strong cash flow by exiting the cash-burning segments, investors will see an improvement in coming periods. Overall, Outerwall is set to deliver value to shareholders. The article Outerwall Listens to Jana -- Should You? originally appeared on Fool.com. Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com and Netflix. Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.