RealD Gains 16% as Third-Quarter Results Top Estimates: Los Angeles Mover
RealD Inc. (RLD), the maker of 3-D projection gear for theaters, gained 16 percent after beating analysts’ estimates for the third quarter, bringing the two-day advance to 29 percent
RealD rose to $11.31 at the close in New York. It added 11 percent yesterday. The Beverly Hills, California-based company said in a statement profit was 5 cents a share. That compared with the average 5.6 cent loss estimated by eight analysts’ in a Bloomberg survey.
Licensing revenue, RealD’s share of cinema ticket sales, rose 51 percent for the quarter ended Dec. 23. Total revenue of $49 million topped analysts’ forecasts of $42.4 million, the average of nine estimates. Licensing gains partly countered a 47 percent drop in product and other revenue, including the sale of glasses used to watch three-dimensional films.
There were 19,700 RealD-equipped screens in operation at the end of the quarter, including 11,500 in the U.S. and Canada, Chief Executive Officer Michael Lewis said on a conference call. The company expects to add 5,200 to 6,000 additional screens during fiscal 2012, he said.
Net income for the quarter totaled $2.83 million compared with a loss of $16.6 million, or 34 cents a share, a year earlier, the company said. Revenue fell 15 percent from $57.8 million a year earlier.
The company went public in July 2010 at $16 a share, with the stock rising to a high of $35 in May 2011 before ending the year down 70 percent as sales missed expectations.
In September, Sony Corp. notified theater owners it would stop paying for the glasses moviegoers wear at 3-D films, the Hollywood Reporter said at the time.
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