The 10-second takeaway
For the quarter ended Dec. 31 (Q3), RealD missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
RealD tallied revenue of $46.9 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $49.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.08. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share. GAAP EPS were -$0.08 for Q3 compared to $0.05 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 44.6%, 670 basis points worse than the prior-year quarter. Operating margin was -6.1%, 1,170 basis points worse than the prior-year quarter. Net margin was -8.9%, 1,470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $40.1 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $214.8 million. The average EPS estimate is -$0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 60 members out of 85 rating the stock outperform, and 25 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give RealD a green thumbs-up, and eight 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 $14.00.
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