Please ensure Javascript is enabled for purposes of website accessibility

Why RealD Shares Popped

By Steve Symington – Feb 6, 2014 at 6:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is RealD's jump meaningful? Or just another movement?

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 thesis.

What: Shares of RealD (NYSE: RLD) popped 10% Thursday after the 3-D movie visual technology specialist released better-than-expected fiscal third-quarter 2014 results.

So what:  Quarterly revenue came in at $55.4 million, which translated to a net loss of $0.01 per share. By contrast, analysts were looking for a wider loss of $0.08 per share on sales of $48.61 million.

The movie Gravity, in particular, has paved the way for RealD's outperformance during the last year, delivering more than $300 million in RealD box-office ticket sales to date. 

Now what: Gravity's success demonstrates just how effective RealD's platform can be, and an enviable slate of more than 20 upcoming films will incorporate its tech, including Captain America: The Winter Soldier, Amazing Spider-Man 2, Transformers: Age of Extinction, and The Hobbit: There and Back Again.

But the company also knows it still has work to do increasing the penetration of high-quality 3-D films to achieve sustained profitability over the long term. For now, I'd prefer that RealD stay on my watchlist to keep tabs on its progress.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
360%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.