RealD
The 10-second takeaway
For the quarter ended Sep. 21 (Q2), RealD beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Revenue details
RealD reported revenue of $55.0 million. The eight analysts polled by S&P Capital IQ expected net sales of $50.5 million on the same basis. GAAP reported sales were 38% lower than the prior-year quarter's $88.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.08. The eight earnings estimates compiled by S&P Capital IQ anticipated -$0.07 per share. GAAP EPS were -$0.08 for Q2 compared to $0.33 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 32.1%, 2,500 basis points worse than the prior-year quarter. Operating margin was -9.2%, 4,350 basis points worse than the prior-year quarter. Net margin was -7.6%, 2,910 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $55.1 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $224.9 million. The average EPS estimate is -$0.09.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 62 members out of 87 rating the stock outperform, and 25 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give RealD a green thumbs-up, and seven 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 $15.50.
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