RealD Beats on EPS But GAAP Results Lag
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 this article 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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