RealD Earnings: Here’s Why Investors are Buying Shares Now

RealD Inc. (NYSE:RLD) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.61%.

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RealD Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.09 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Decreased 9.29% to $45.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RealD Inc. reported adjusted EPS loss of $0.09 per share. By that measure, the company beat the mean analyst estimate of $-0.19. It beat the average revenue estimate of $42.97 million.

Quoting Management: “RealD delivered strong free cash flow for our fourth quarter and fiscal year ended March 31, 2013, despite the slight year-over-year decline in license revenue,” said Michael V. Lewis, Chairman and Chief Executive Officer of RealD. “We also continue to advance our international expansion initiatives, highlighted by the recent opening of our first office in Latin America. Additionally, RealD’s largest exhibitor customer in Latin America, Cinepolis, entered into an expanded agreement to equip at least 400 additional auditoriums with RealD 3D technology across the Cinepolis circuit in Latin America, the United States and India within the next 12 months.”

Key Stats (on next page)…

Revenue decreased 3.28% from $46.94 million in the previous quarter. EPS decreased to $-0.09 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.10 to a profit $0.12. For the current year, the average estimate has moved up from a loss of $0.34 to a loss of $0.27 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)