RealD Shares Hammered Again Despite Posting Strong Quarterly Profit
The company misses slightly on the top line and discloses that a deal for 3D televisions has fallen through.
Shares of RealD were taking a beating again on Wednesday after the company announced fiscal second-quarter earnings that handily beat per-share profit estimates but fell short of revenue expectations.
The company also said Wednsday that a deal with Samsung Electronics for 3D television display panels has fallen through, so RealD is pursuing other potential partners.
The company earned $18.8 million, up from a loss of $5.1 million in the same quarter last year. On a per-share basis, it earned 33 cents, blowing away estimates it would earn just 22 cents. Revenue that grew 35 percent to $88 million, though, fell about $2 million shy of estimates.
RealD shares surged 10 percent during the regular session to $11.26, though the gains were wiped out in the after-hours session when the stock was down as much as 14 percent. Shares of RealD have been sinking steadily since touching $35 in May as investors worry about the cost of 3D glasses and whether audiences share the company's enthusiasm for 3D movies.
In its earnings announcement, RealD highlighted a dozen movies released during the quarter where its 3D technology was used, including Transformers: Dark of the Moon, Harry Potter and the Deathly Hallows Part 2, Captain America: The First Avenger, Lion King 3D and Dolphin Tale 3D.
Upcoming movies in RealD 3D include The Adventures of Tintin, Hugo, Arthur Christmas and Immortals.
- MOST SHARED
- MOST POPULAR