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: RealD (NYSE: RLD) shares jumped 21% Wednesday morning after the company released earnings that beat expectations.

So What: In the fiscal second quarter, RealD reported revenue of $65.3 million, up 68.7% from last year and easily topping expectations of $50.9 million. Higher revenue couldn't swing the company to a profit, though, as net loss was $5.1 million, or $0.12 per share.

Now What: RealD and IMAX (Nasdaq: IMAX) both reported outstanding third-quarter results, showing movie buffs are trading up for the 3-D and big-screen experience. My concern is the negative gross margins for RealD's product segment, which isn't being made up by higher margin licensing revenue yet. I like what RealD is doing in the movie business, but I just can't get too excited about the posting of another loss when competitor IMAX is already solidly profitable.

Interested in more info on RealD? Add it to your watchlist here by clicking here.

Fool contributor Travis Hoium is long shares of IMAX. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

IMAX is a Motley Fool Rule Breakers selection. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.