RealD Stock Soars 25 Percent
A day after the 3D movie company reported a quarterly loss, its shares rally.
Shares of RealD soared more than 25 percent on Wednesday, a day after the company reported a quarterly loss that wasn't as big as Wall Street had expected.
RealD stock had been taking a beating for months and was down 38 percent on the year until Wednesday, when shares rose $1.76 to $8.76.
The catalyst for Wednesday's rally was a report Tuesday that the company lost only eight cents per share in its fiscal second quarter, while analysts were expecting a loss of about 19 cents a share.
The popularity of Gravity has helped RealD, and on Tuesday CEO Michael Lewis said the company is installing 250 new 3D screens in China and Russia, two the world's fastest growing markets for movie exhibition.
On Wednesday, B. Riley analyst Eric Wold reiterated his "buy" recommendation on the stock and $11 price target.
"We remain positive on the long-term view for RealD's 3D market share, solid outlook for overseas growth and potential consumer-electronics license contributions," Wold wrote Wednesday.