The 10-second takeaway
For the quarter ended Sep. 30 (Q3), RealNetworks met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share grew.
Margins dropped across the board.
RealNetworks reported revenue of $59.1 million. The one analyst polled by S&P Capital IQ expected a top line of $59.7 million on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $84.4 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 -$0.63. The one earnings estimate compiled by S&P Capital IQ predicted -$0.30 per share. GAAP EPS were -$0.63 for Q3 compared to -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.3%, 500 basis points worse than the prior-year quarter. Operating margin was -20.7%, 1,710 basis points worse than the prior-year quarter. Net margin was -37.6%, 3,150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.0 million. On the bottom line, the average EPS estimate is -$0.17.
Next year's average estimate for revenue is $252.5 million. The average EPS estimate is $1.02.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 176 members out of 226 rating the stock outperform, and 50 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give RealNetworks a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RealNetworks is hold, with an average price target of $10.00.
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