Analyst: IMAX Looks Primed to Benefit From Year-End Activity

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The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.

IMAX (NYSE:IMAX) will report second-quarter 2014 (June) results before market open on Thursday and hold a conference call at 5:30 a.m. Pacific (dial-in: 800-524-8950, conference ID: 1883257; webcast:

We are decreasing Q2 estimates to reflect weaker-than-expected box office results for IMAX. We are also adjusting our expectations for Q3 and Q4 as we gain greater visibility into the IMAX film slate. We expect Q2 revenue of $78 million and EPS of 23 cents versus prior estimates of $83 million and 29 cents, and consensus of $79 million and 25 cents. We are initiating FY:15 estimates for revenue of $340 million and EPS of $1.03.

Q2:14 box office was down 6.6 percent, with May and June very weak after a strong April. Year-over-year, April was up 21.5 percent, May ended down 11.9 percent, and June ended down 16.3 percent. Q3:14 is off to a slow start, down 36 percent quarter-to-date. Independence Day weekend results this year were the worst since 1999 and down over 40 percent year-over-year. Poor results were due to several factors, including a Friday Fourth of July shortening the weekend and large viewership of the World Cup.