Analyst: IMAX Corporation Primed for Gains

Old Movie Theater

IMAX (NYSE:IMAX) will report Q3:13 (September) results before market open on Thursday, October 24, and hold a conference call at 5:30 a.m. PT. We expect Q3 results to be in-line with our recently revised estimates, which reflect weaker-than-expected box office for high-profile worldwide releases. Although IMAX no longer provides mid-quarter or end-of-quarter box office updates, it appears that Elysium, Pacific Rim, and Riddick performed below the levels we had initially expected.

For Q3, we expect revenue of $58 million and EPS of $0.07 versus consensus of $52 million and $0.05. Gravity is leading the Q4 domestic box office and is benefiting from a high percentage of premium priced show times that will offset the impact of lower revenue spillover from Q3 releases. For FY:13, we expect revenue of $280 million and EPS of $0.67, vs. consensus of $280 million and $0.69. The company does not provid e quarterly or FY guidance.

Our Q4 box office expectations may be overly conservative. The release slate in the first half of the quarter appears to be some what light apart from Gravity, but we continue to expect The Hunger Games: Catching Fire and The Hobbit: The Desolation of Smaug to be among the year’s top performers. We will re-evaluate our Q4 expectations after we know Q3 results and have had a chance to see how the two aforementioned sequels perform.