The value of small cap stock for RealD (NYSE:RLD) fell by more than a quarter of its value on Tuesday after its quarterly report showed net income was down 69 percent – much lower than the average of analysts' forecasts.
According to The Associated Press, the company, which manufacturers 3-D equipment for movie theaters, announced that net income during the second quarter of 2012 came in at $3 million, or 5 cents per share, lower than the roughly $9 million analysts polled by FactSet were anticipating.
While total revenue did climb by 14 percent to $68.2 million, this figure was also below the $71.2 million analysts had expected.
"Our bottom-line comparison versus the prior-year quarter was impacted by a $5.9 million decline in our product gross profits that resulted from a significantly reduced mix of recycled eyewear shipped to RealD-equipped theaters during the quarter," said RealD CEO Michael Lewis.
The poor performance led Benjamin Mogil, an analyst with Stifel Nicolaus, to lower his rating of the stock to "Hold" from "Buy."
RealD stock was down 27.2 percent to $9.17 as of 3:10 p.m. on Tuesday, July 31.