RealNetworks (NAS: RNWK) reported earnings on Aug. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), RealNetworks missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share improved. The profit was a surprise, as analysts had predicted a loss.
Gross margins shrank, operating margins shrank, net margins improved.
RealNetworks reported revenue of $65.5 million. The one analyst polled by S&P Capital IQ expected sales of $67.2 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $83.8 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 $2.32. The one earnings estimate compiled by S&P Capital IQ anticipated -$0.25 per share. GAAP EPS were $2.32 for Q2 compared to -$0.20 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 60.4%, 300 basis points worse than the prior-year quarter. Operating margin was -18.7%, 1,340 basis points worse than the prior-year quarter. Net margin was 123.6%, 13,180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $59.7 million. On the bottom line, the average EPS estimate is -$0.30.
Next year's average estimate for revenue is $254.4 million. The average EPS estimate is $1.39.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 176 members out of 230 rating the stock outperform, and 54 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give RealNetworks a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RealNetworks is hold, with an average price target of $11.00.
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The article RealNetworks Makes Analysts Look Bad originally appeared on Fool.com.
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