The 10-second takeaway
For the quarter ended Dec. 31 (Q4), IMAX beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins expanded, net margins contracted.
IMAX tallied revenue of $66.7 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $62.9 million on the same basis. GAAP reported sales were 3.6% lower than the prior-year quarter's $69.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.14. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share on the same basis. GAAP EPS of $0.09 for Q4 were 89% lower than the prior-year quarter's $0.80 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 44.7%, 790 basis points worse than the prior-year quarter. Operating margin was 15.1%, 1,320 basis points better than the prior-year quarter. Net margin was 9.5%, 6,880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $55.9 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $293.7 million. The average EPS estimate is $1.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,486 members out of 1,590 rating the stock outperform, and 104 members rating it underperform. Among 449 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 433 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 $25.19.
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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. Motley Fool newsletter services have recommended buying 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.