RealD Shares Plunged: 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 RealD (NYS: RLD) , whose gear is used to project and view 3-D images, fell more than 21% in early trading and remain down more than 15% as of this writing. The company failed to live up to Wall Street estimates for first-quarter revenue.

So what: For investors, this is just the latest in a string of brutal hits. RealD has suffered 10% or worse down days in May, June, and now twice in July. For the first time, the stock is trading below its IPO price of $16 a share.

Now what: RealD booked $59.6 million in revenue, down $64.5 million in last year's first quarter. Analysts were expecting $78.9 million, probably figuring on increased 3-D demand with the release of Time Warner's (NYS: TWX) Harry Potter and the Deathly Hallows: Part 2 and Walt Disney's (NYS: DIS) Captain America: The First Avenger. Management referenced both films in its earnings report. Neither was enough to carry sales to hoped-for levels. Does it matter? You tell me. Let us know what you think about RealD using the comments box below.

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At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Disney and Time Warner at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of Walt Disney. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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