RealD (NYS: RLD) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 18 (Q3), RealD beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly. The profit was a surprise, as analysts had predicted a loss.
Margins dropped across the board.
RealD tallied revenue of $49.0 million. The nine analysts polled by S&P Capital IQ foresaw sales of $42.4 million. Sales were 16% lower than the prior-year quarter's $57.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.05. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. GAAP EPS of $0.05 for Q3 were 38% lower than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.9%, 270 basis points worse than the prior-year quarter. Operating margin was 3.1%, 690 basis points worse than the prior-year quarter. Net margin was 5.8%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.6 million. On the bottom line, the average EPS estimate is -$0.12.
Next year's average estimate for revenue is $240.2 million. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 62 members out of 89 rating the stock outperform, and 27 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give RealD a green thumbs-up, and seven 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 $18.79.
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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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