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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