IMAX Earnings: Here’s Why the Stock is Up Now

IMAX Corporation (NASDAQ:IMAX) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.99%.

IMAX Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.22 in the quarter as EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 17.22% to $82.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IMAX Corporation reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.26. It beat the average revenue estimate of $76.36 million.

Quoting Management: “In the second quarter we remained focused on executing our strategy of expanding the network and delivering solid global box office and per screen performance, which resulted in strong recurring revenue growth,” said Richard L. Gelfond , IMAX Chief Executive Officer. “Strategic investments – including our innovative laser projection system – along with some non-recurring items, contributed to higher operating expenses in the quarter.”

Key Stats (on next page)…

Revenue increased 65.03% from $49.87 million in the previous quarter. EPS increased 175% from $0.08 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.25 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.94 to a profit of $0.85 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)