RealD Falls After Third-Quarter Sales Miss Estimates: L.A. Mover
RealD Inc., the maker of 3-D movie projection equipment, dropped the most in more than a month after third-quarter revenue missed analysts’ estimates.
RealD, based in Beverly Hills, California, fell 2.5 percent to $11.36 at the close in New York, the biggest one-day dip since Dec. 19. As of yesterday, the shares had lost 3.2 percent in the past year compared with a 33 percent gain for the Standard & Poor’s 500 Media Index.
RealD posted revenue of $46.9 million, according to a statement yesterday, less than the $47.8 million average of analysts’ estimates compiled by Bloomberg. The company cited lower product sales, including glasses sold in international markets. RealD has said glasses sales will gradually decline as more theaters recycle the eyewear.
“Today’s sell-off is unwarranted given what was a relatively solid quarter,” said Eric Wold, an analyst with B. Riley Caris & Co. in San Francisco who recommends buying the stock. “We’re heading into a very robust 3-D box-office year with nine of the top 10 movies in 3-D versus five to six for the past two years.”
RealD reported a net loss of $4.16 million, or 8 cents a share, in the quarter ended Dec. 31, compared with profit of $2.83 billion, or 5 cents, a year earlier. Analysts had forecast a loss of 10 cents, the average of seven estimates compiled by Bloomberg.
To contact the reporter on this story: Michael White in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Palazzo at email@example.com