RealD (RLD) Surges on Earnings Beat

Jacob Harper |

RealD Inc. (RLD) saw its shares jump in aftermarket on Nov 12 after the company posted their second financial quarter earnings, which showed the company to have experienced far less losses than analysts expected.

Prior to the aftermarket stock pop, RealD had experienced an incredibly lackluster year, shedding over half of its value since June. While the earnings beat showed the company continuing to lose money,. The loss was not nearly as severe as anticipated.



In a conference call with investors, CEO and co-founder Michael V. Lewis attributed the company’s success to renewed faith in 3D, whose renaissance the last few years had begun to taper. Specifically, Lewis singled out the success of 3D blockbuster film Gravity, whose breakout delivered nearly $200 million in “RealD box globally and record levels of 3D.”

The opening weekend of Gravity constituted the best 3D opening ever, surpassing even the biggest blockbuster of all time, Avatar, in terms of 3D receipts generated.

For their fiscal second quarter 2013 earnings report, RealD  reported a net loss of $4.7 million, or $0.09 per share, versus the net loss of $4.2 million, or $0.08 per share, from the same period a year ago. Revenue for the quarter was $43.9 million ($31 million from licensing and $12.9 million from other streams), as compared to $55 million in revenue from the same quarter the previous year. Analysts were expecting a net loss of $0.19 per share on revenues of $42.5 million.

RealD popped on the news, gaining 22 perent to hit $8.54 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
RLD RealD n/a n/a n/a 0 Trade
RWCI RWC Inc. 14.50 0.00 0.00 0

Comments

Emerging Growth

Margaux Resources Ltd.

Margaux Resources Ltd is a Calgary based resource company. The Company is focused on its Jersey Emeral Tungsten-Zinc property located in the southeast portion of British Columbia.

Private Markets

CF0005, LLC dba Mesa-Marshall #1-2

MESA Resources, Inc. ("MESA") is sponsoring the development of the oil & gas well completion project "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development…

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…