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.
Looking for alternatives to RealD? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add RealD to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.