For its fiscal third quarter, the 3D technology company posted a loss of 1 cent a share, beating Capital IQ Consensus Estimate of a loss of 9 cents a share. RealD reported revenue of $55.4 million, compared to analyst estimates of $50.6 million.
The company said both box office and licensing revenue increased from the year-ago period thanks to the film Gravity. The film delivered "over $300 million in RealD box office to-date," CEO Michael V. Lewis said in a statement.
- REALD INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, REALD INC swung to a loss, reporting -$0.20 versus $0.65 in the prior year. For the next year, the market is expecting a contraction of 125.0% in earnings (-$0.45 versus -$0.20).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has decreased by 11.4% when compared to the same quarter one year ago, dropping from -$4.17 million to -$4.65 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, REALD INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $16.66 million or 26.87% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, REALD INC has marginally lower results.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, RLD has underperformed the S&P 500 Index, declining 19.16% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full analysis from the report here: RLD Ratings Report
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV