What happened
Shares of big-screen cinema technologist IMAX (IMAX 4.07%) 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.
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.
