IMAX Earnings Preview: Movie Analyst Sees Interesting Activity in New Theater Orders

According to analyst Michael Pachter at Wedbush Morgan, IMAX (NASDAQ:IMAX) is going to deliver in-line earnings on Thursday, but he likes some of the business activity noted below.

Here’s Pachter’s bullet points for his preview of IMAX earnings:

  • IMAX will report Q4 2010 results before the market open on Thursday, February 24, and hold a conference call at 5:30am PT (dial-in: 866-322-1159, conference ID: 2295270, webcast: Investor Relations at www.imax.com).
  • We are lowering our Q4:10 estimates for revenue to $64 million from $69 million, and for EPS to $0.19 from $0.20 to reflect lower-than-expected Services (DMR) revenue for certain Q4 films, as Paranormal Activity 2 and Megamind underperformed at the box office.
  • Expecting in-line Q4:10 results.
  • IMAX is taking orders for new theaters at a feverish clip.
  • While the industry is rapidly flooding with 3D screens, we think the IMAX brand is more about an immersive experience, positioning it to weather a competitive onslaught.
  • Maintaining our OUTPERFORM rating, but increasing our 12-month price target to $35 from $24 to reflect improving profitability and growth prospects.

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