Will RealD (RLD)’s Earnings Finally Catch Up With Its Stock?

The main rival that RealD faces is IMAX Corporation (USA) (NYSE:IMAX), and the biggest challenge IMAX Corporation (USA) (NYSE:IMAX) poses for RealD is that IMAX and its huge-screen theaters give viewers an impressive experience even with 2-D films. That flexibility has been a key component driving IMAX’s growth, with a global footprint extending to hundreds of theaters in more than 50 countries worldwide. RealD has tried to match that with its precision white-screen technology, but RealD can’t make theater-operators install the huge screens to match up to IMAX Corporation (USA) (NYSE:IMAX).

Still, with a share of box-office receipts for movies that studios show in 3-D format, RealD (NYSE:RLD) hopes to turn things around with the coming release of Man of Steel later this month. Moreover, with the blockbuster Iron Man 3 not having been released until early May, none of that movie’s impact will be in RealD’s March numbers.

In RealD’s report, therefore, the more important information will come from any guidance the company gives for its June quarter. If RealD can’t make solid strides toward sustainable profitability with such an impressive lineup of blockbuster movies, then investors need to take a second look at their entire premise for owning the stock.

The article Will RealD’s Earnings Finally Catch Up With Its Stock? originally appeared on Fool.com and is  written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends IMAX. The Motley Fool owns shares of IMAX.

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