Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of theater operator Regal Entertainment (NYSE: RGC ) hit box-office gold when they jumped 13% in trading today.
So what: Revenue for the second quarter was $753.3 million, a slight increase from last year, and earnings per share were $0.23. Revenue was a lower than estimates, but earnings per share topped estimates by $0.04.
Now what: It was a slow year at the box office until the Transformers and Harry Potter hit the big screen, so the better-than-expected results were a bit of a surprise. The strength of the second quarter shows just how successful Regal has been in controlling costs, which should help drive future results. By the look of the first few weeks of July, I think the third quarter will also be better than expected, and Regal has room to run higher.
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