RealNetworks Posts 60% Q1 Earnings Surge

| About: RealNetworks, Inc. (RNWK)

Shares of Seattle-based digital media provider RealNetworks gained 7% to $8.12 in AH trading Wednesday after the company reported better-than-forecast Q1 results. Q1 net income rose 60% to $40 million ($0.22/share) from $24.9 million ($0.14) in the year-ago period. Analysts were expecting EPS of $0.17. Revenue reached $129.5 million from $86.6 million, also beating analyst expectations of $125.3 million. The company is forecasting Q2 revenue of $130-134 million, an EPS range of a $0.01 loss to a $0.01 profit and EPS before items of $0.04-0.06. Analysts were forecasting break-even EPS excluding items on revenue of $133.6 million for Q2. For the full year, the company is projecting revenue of $547 million-563 million, EPS of $0.24-0.27 and EPS before items of $0.23-0.25. Analysts were forecasting EPS before items of $0.22 on revenue of $550.5 million. RealNetworks also announced its board has approved a $100 million stock buyback program.

Sources: RealNetworks Q1 2007 Earnings Call Transcript, Press release, MarketWatch, Reuters,
Commentary: Can RealNetworks Survive the Competition?RealNetworks: Fairly Valued After Recent Swoon
Stocks/ETFs to watch: RealNetworks, Inc. (NASDAQ:RNWK). Competitors: Apple Inc. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT). ETFs: Internet Infrastructure HOLDRs (NYSE:IIH), Internet HOLDRs (NYSE:HHH), PowerShares Dynamic Small Cap Growth (PWT)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

About this article:

Tagged: , Application Software, Earnings
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here