RealD Second Quarter Earnings Sneak Peek

RealD (NYSE:RLD) will unveil its latest earnings on Monday, October 29, 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 estimate of analysts is for net loss of 3 cents per share, up from profit of 33 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 16 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 2 cents during the last month. For the year, analysts are projecting a loss of 4 cents per share, a swing from net income of 61 cents last year.

Past Earnings Performance: Last quarter, the company missed estimates by 8 cents, coming in at profit of 7 cents per share versus a mean estimate of net income of 15 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 14 cents.

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A Look Back: In the first quarter, profit fell 69% to $3 million (5 cents a share) from $9.6 million (17 cents a share) the year earlier, missing analyst expectations. Revenue rose 14.5% to $68.2 million from $59.6 million.

Wall St. Revenue Expectations: On average, analysts predict $51.7 million in revenue this quarter, a decline of 41.2% from the year-ago quarter. Analysts are forecasting total revenue of $227.4 million for the year, a decline of 7.8% from last year’s revenue of $246.6 million.

Stock Price Performance: Between July 30, 2012 and October 23, 2012, the stock price fell $3.05 (-24.2%), from $12.60 to $9.55. The stock price saw one of its best stretches over the last year between October 12, 2012 and October 23, 2012, when shares rose for eight straight days, increasing 6.6% (+59 cents) over that span. It saw one of its worst periods between May 9, 2012 and May 17, 2012 when shares fell for seven straight days, dropping 9.3% (-$1.12) over that span.

Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 15.2% in the third quarter of the last fiscal year and 14.5% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and three 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 2.21 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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