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IMAX tops Q3 estimates on box office strength

By Reuters News


Overview

  • Entertainment technology firm's Q3 revenue rose 64% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 surged 370% yr/yr, beating analyst expectations

  • Company cites record global box office and The Odyssey's performance as key drivers


Outlook

  • Company expects strong 2027 film slate with major releases including Dune: Part Three and Avengers: Doomsday

  • IMAX says sales activity is accelerating following record box office performance and strong pre-sales for upcoming releases

  • Company sees growing demand for premium shared experiences benefiting its business going forward


Result Drivers

  • BOX OFFICE PERFORMANCE - Record global box office of $712 mln, led by The Odyssey, drove significant revenue and margin growth

  • CONTENT SOLUTIONS GROWTH - Content Solutions segment revenue and gross margin rose 110% and 125% yr/yr, reflecting higher box office and platform scale

  • TECHNOLOGY PRODUCTS AND SERVICES - Segment revenue and gross margin increased 28% and 53% yr/yr, driven by rental revenue growth and contract renewals


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$174.60 mln

$168.53 mln (12 Analysts)

Q3 Adjusted EPS

Beat

$2.21

$1.02 (11 Analysts)

Q3 EPS

$1.96

Q3 Adjusted Net Income

Beat

$127.90 mln

$55.93 mln (6 Analysts)

Q3 Net Income

$117.10 mln

Q3 Adjusted EBITDA Margin

69.30%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the entertainment production peer group is "buy"

  • Wall Street's median 12-month price target for IMAX Corporation is $60.00, about 15.9% above its November 4 closing price of $51.76

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago


Reuters Recommended Reads

  • Nov 4 - AMC Entertainment Q3 revenue beats estimates on strong attendance

  • Nov 3 - Cinemark posts record Q3 revenue, net income up 146%

  • Nov 4 - Madison Square Garden beats Q1 revenue estimates on more concerts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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