'Gravity' Boosts RealD’s StockMonday, October 7, 2013
RealD Inc. shares jumped more than 9 percent Monday, boosted by a stronger-than-expected weekend box office for the space thriller “Gravity.”
The special-effects laden film starring Sandra Bullock and George Clooney grossed $55.6 million in its opening weekend, exceeding analyst projections of $35 million. Warner Bros., which distributed the film, said 3-D screenings accounted for 80 percent of ticket sales domestically and 70 percent overseas.
Beverly Hills-based RealD licenses its stereoscopic 3-D technologies to theaters in the United States, Canada and overseas. While IMAX theaters grabbed some of Gravity's business, the results on RealD’s 3-D screens are helping turn around investor’s disappointment with a “dismal summer” for 3-D versions of movies, according to Eric Wold, an analyst at B. Riley & Co.
“We believe investors will quickly look beyond the third quarter,” Wold wrote in a note to investors, noting that in addition to “Gravity,” anticipation is high for the 3-D versions of the upcoming “The Hobbit: The Desolation of Smaug” and “Thor: The Dark World.”
Share closed up 59 cents, or 9.2 percent, to $7 on the New York Stock Exchange.