RealD Inc. Earnings: Swing to a Profit, Beating Estimates

February 01, 2012

RealD Inc. (NYSE:RLD) climbed to a profit in the third quarter on lower costs. RealD is a global licensor of 3D technologies for commercial and home theaters.

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RealD Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $2.8 million (5 cents per diluted share) in the quarter. RealD Inc. had a net loss of $16.6 million or a loss 34 cents per share in the year earlier quarter.

Revenue: Fell 15.2% to $49 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RealD Inc. beat the mean analyst estimate of a loss of 6 cents per share. It beat the average revenue estimate of $42.3 million.

Quoting Management: “Prudent management of operating expenses enabled RealD to maintain profitability during the third fiscal quarter despite a relatively muted 3D film slate,” said Michael V. Lewis, Chairman and Chief Executive Officer of RealD. “Looking forward, we are excited about the promising slate of 3D films in our fiscal 2013 that begins on March 24, 2012, as well as continued expansion within international markets.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 12 cents in the second quarter, by 11 cents in the first quarter, and by 24 cents in the fourth quarter of the last fiscal year.

Looking Forward: The average estimate for the fourth quarter is down from a loss of 2 cents per share ninety days ago to a loss of 12 cents, indicating that analysts are increasingly pessimistic about the company’s next quarter performance. Over the past sixty days, the average estimate for the fiscal year has reached 36 cents abs per share, a decline from 48 cents.

Stock Performance: Shares of RLD were up 11.1% from the previous close.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com