Please ensure Javascript is enabled for purposes of website accessibility

Why IMAX Corp. Stock Soared Today

By Anders Bylund - Oct 26, 2017 at 3:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Third-quarter results showed that the big-screen technology developer can succeed even when the movie industry as a whole is suffering weak attendance.

What happened

Shares of big-screen cinema technologist IMAX (IMAX 1.39%) jumped as much as 11.9% higher on Thursday, reaching that peak near 1:10 p.m., EDT. The company reported third-quarter results in the early morning, blowing away analyst targets across the board.

So what

In the third quarter, IMAX saw revenues rising 35% higher year over year, landing at $98.8 million. Adjusted earnings stopped at $0.08 per diluted share, down from $0.12 per share in the year-ago period. Analysts would have settled for earnings of $0.01 per share on sales near $86.4 million.

At the box office, IMAX titles set a record for third-quarter gross receipts at $219 million, a 17% annual increase.

IMAX logo in the form of a sign at the corner of a tall building, set against blue skies.

Image source: IMAX.

Now what

These gains were posted even as the larger movie industry struggled -- overall, domestic box office receipts fell 14% from the previous summer. IMAX shares had been following the negative sector tenor over the last three months, but these results showed that the company can succeed in difficult market conditions. Larger-than-life movie experiences appear to be holding audience attentions in this age of cord-cutting and video streaming right into the living room.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

IMAX Corporation Stock Quote
IMAX Corporation
IMAX
$16.83 (1.39%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
319%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.