The 10-second takeaway
For the quarter ended June 22 (Q1), RealD missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins dropped across the board.
RealD reported revenue of $68.2 million. The eight analysts polled by S&P Capital IQ predicted revenue of $70.6 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $59.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.05. The seven earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.05 for Q1 were 71% lower than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.0%, 1,350 basis points worse than the prior-year quarter. Operating margin was 12.2%, 1,320 basis points worse than the prior-year quarter. Net margin was 4.4%, 1,170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $72.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $262.3 million. The average EPS estimate is $0.42.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 65 members out of 92 rating the stock outperform, and 27 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give RealD a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RealD is outperform, with an average price target of $16.92.
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