Why RealD Shares Popped

Updated
Why RealD Shares Popped

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 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.

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The article Why RealD Shares Popped originally appeared on Fool.com.

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