IMAX's Upcoming Earnings: What You Need To Know

IMAX (NYSE: IMAX  ) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict IMAX's revenues will compress -3.9% and EPS will expand 33.3%.

The average estimate for revenue is $53.5 million. On the bottom line, the average EPS estimate is $0.08.

Revenue details
Last quarter, IMAX booked revenue of $77.8 million. GAAP reported sales were 20% higher than the prior-year quarter's $64.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS of $0.19 for Q4 were 138% higher than the prior-year quarter's $0.08 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 53.9%, much better than the prior-year quarter. Operating margin was 19.5%, 830 basis points better than the prior-year quarter. Net margin was 16.5%, 710 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $309.6 million. The average EPS estimate is $0.96.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,559 members out of 1,668 rating the stock outperform, and 109 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 392 give IMAX a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IMAX is outperform, with an average price target of $26.45.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Imax. The Motley Fool owns shares of Imax. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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