The 10-second takeaway
For the quarter ended March 31 (Q4), RealD beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
RealD recorded revenue of $45.4 million. The eight analysts polled by S&P Capital IQ predicted revenue of $42.6 million on the same basis. GAAP reported sales were 9.2% lower than the prior-year quarter's $50.0 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 -$0.09. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.19 per share. GAAP EPS were -$0.09 for Q4 compared to $0.10 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%, much worse than the prior-year quarter. Operating margin was -6.0%, much worse than the prior-year quarter. Net margin was -9.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $64.3 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $234.2 million. The average EPS estimate is -$0.02.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 63 members out of 88 rating the stock outperform, and 25 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 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 $14.10.
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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. TMFDisclosureHere