The 10-second takeaway
For the quarter ended March 31 (Q1), RealNetworks beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share increased.
Margins shrank across the board.
RealNetworks reported revenue of $67.0 million. The three analysts polled by S&P Capital IQ expected to see sales of $66.0 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $87.3 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 -$0.49. The three earnings estimates compiled by S&P Capital IQ forecast -$0.29 per share. GAAP EPS were -$0.49 for Q1 against -$0.36 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 59.0%, 430 basis points worse than the prior-year quarter. Operating margin was -22.9%, 1,700 basis points worse than the prior-year quarter. Net margin was -25.4%, 1,130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $68.8 million. On the bottom line, the average EPS estimate is -$0.24.
Next year's average estimate for revenue is $278.1 million. The average EPS estimate is -$1.00.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 176 members out of 227 rating the stock outperform, and 51 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give RealNetworks a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RealNetworks is outperform, with an average price target of $12.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.