The 10-second takeaway
For the quarter ended June 30 (Q2), IMAX beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP earnings per share expanded.
Margins contracted across the board.
IMAX booked revenue of $82.3 million. The 14 analysts polled by S&P Capital IQ anticipated revenue of $77.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $70.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share. Non-GAAP EPS of $0.22 for Q2 were 4.8% higher than the prior-year quarter's $0.21 per share. GAAP EPS of $0.17 for Q2 were 6.3% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.0%, 230 basis points worse than the prior-year quarter. Operating margin was 21.1%, 130 basis points worse than the prior-year quarter. Net margin was 14.4%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $70.1 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $293.8 million. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,587 members out of 1,699 rating the stock outperform, and 112 members rating it underperform. Among 437 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 421 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 $30.82.
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