RealD climbs as 3Q results top analysts' estimates
NEW YORK (AP) — RealD's stock rose Thursday as the 3-D technology company's fiscal third-quarter results beat analysts' expectations.
Late Wednesday RealD Inc. reported a loss of 1 cent per share on revenue of $55.4 million. Analysts surveyed by FactSet expected a bigger loss of 8 cents per share on revenue of $50.4 million.
The Los Angeles company said that its box office and licensing revenue both climbed from a year ago, driven by the film "Gravity."
Ralph Schackart of William Blair said in a client note that the quarterly performance was strong, with China doing well thanks to demand for locally produced 3-D content.
The analyst reiterated an "Outperform" rating.
Stifel Nicolaus' Benjamin Mogil said that the increased contribution to 3-D revenue from local language films is encouraging. The analyst maintained a "Hold" rating, saying he'd like to see some of RealD's incentive programs boost 3-D rates before becoming more positive on the stock.
Shares of RealD gained 83 cents, or 9.6 percent, to $9.47 in afternoon trading. Over the last year, the stock is down 19 percent.