RealD First Quarter Earnings Sneak Peek

RealD (NYSE:RLD) will unveil its latest earnings on Monday, July 30, 2012. RealD is a global licensor of 3D technologies for commercial and home theaters.

RealD Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 15 cents per share, a decline of 11.8% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 14 cents during the last month. Analysts are projecting profit to rise by 31.1% versus last year to 42 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 14 cents, coming in at profit of 6 cents a share versus the estimate of net loss of 8 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 23.9% to $5.5 million (10 cents a share) from $4.5 million (14 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 14.5% to $50 million from $58.5 million.

Wall St. Revenue Expectations: On average, analysts predict $70.4 million in revenue this quarter, a rise of 18.2% from the year-ago quarter. Analysts are forecasting total revenue of $264.6 million for the year, a rise of 7.3% from last year’s revenue of $246.6 million.

Stock Price Performance: Between June 25, 2012 and July 24, 2012, the stock price dropped $2.19 (-15.3%), from $14.34 to $12.15. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 20, 2012, when shares rose for eight straight days, increasing 18.4% (+$2.16) over that span. It saw one of its worst periods between August 29, 2011 and September 9, 2011 when shares fell for nine straight days, dropping 15.9% (-$2.37) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 15.2% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.04 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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