Regal Entertainment Shares Popped: What You Need to Know
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: Shares of theater operator Regal Entertainment (NYS: RGC) hit box-office gold when they jumped 13% in trading today.
So what: Revenue for the second quarter was $753.3 million, a slight increase from last year, and earnings per share were $0.23. Revenue was a lower than estimates, but earnings per share topped estimates by $0.04.
Now what: It was a slow year at the box office until the Transformers and Harry Potter hit the big screen, so the better-than-expected results were a bit of a surprise. The strength of the second quarter shows just how successful Regal has been in controlling costs, which should help drive future results. By the look of the first few weeks of July, I think the third quarter will also be better than expected, and Regal has room to run higher.
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At the time this article was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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