RealD Makes a Turnaround in 3D
RealD (NYSE:RLD) has made a big turnaround from its losses a year ago. The 3D film company lost $38.9 in 2011, but in its fiscal third quarter earned $2.8 million. RealD 3D movies released during the quarter include Immortals, Happy Feet 2, The Three Musketeers, Hugo and The Adventures of Tintin.
Michael Lewis, RealD’s CEO and chairman, admitted that the 3D film slate in the quarter was “relatively muted,” but said “prudent management of operating expenses” enabled the company to turn a profit.
Investors are concerned whether 3D movies will lose their attractiveness over time and whether studios will keep subsidizing the glasses.
Yesterday GARP Research announced a “buy” recommendation for RealD, and the stock rose 11 percent to $9.74. Upcoming films for RealD are Star Wars: Episode I — The Phantom Menace and Journey 2: The Mysterious Island.
Here’s how RealD shares are reacting to earnings:
RealD Inc. (NYSE:RLD): RLD shares recently traded at $9.74, down $1.49, or 13.27%.
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