RealD Effort To Talk Up 3D Leaves Investors Cold As Stock Falls In After Hours Trading

UPDATE, 3:30 PM: Things were fine for RealD, until executives started talking. The company’s stock price initially jumped in after-hours trading following a surprisingly strong earnings report. That would be a welcome change for the company whose stock value has dropped more than 29% since mid-May. But investor sentiment quickly changed about mid-way through CEO Michael Lewis’ briefing where he scoffed at the notion that consumers are fed up with paying higher ticket prices for 3D. The stock price fell to 7.4% below Thursday’s $24.07 closing price. “I don’t think that two films a trend makes,” Lewis said referring specifically to the disappointing 3D sales for Disney’s Pirates Of The Caribbean: On Stranger Tides and DreamWorks Animation’s Kung Fu Panda 2. “I don’t see a trend. It’s a trend until the trend changes to something else.” He added that results for 3D films this year “will be all over the place, but the end result will be a good one.” RealD is especially optimistic about the performance of its screens outside the U.S. The international venues account for 49% of RealD’s locations, but 55% of its gross revenues. Lewis didn’t directly answer a question about whether weakening 3D sales in the U.S. might be an early warning of what will happen overseas. (more…)

This article was printed from https://deadline.com/2011/06/will-realds-strong-earnings-ease-fears-of-a-3d-slowdown-138641/