The 10-second takeaway
For the quarter ended March 31 (Q1), IMAX beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved.
Margins increased across the board.
IMAX logged revenue of $55.6 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $54.3 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $44.9 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 $0.06. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were $0.04 for Q1 against -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 290 basis points better than the prior-year quarter. Operating margin was 8.2%, 520 basis points better than the prior-year quarter. Net margin was 4.7%, 690 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $76.2 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $300.6 million. The average EPS estimate is $0.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,477 members out of 1,584 rating the stock outperform, and 107 members rating it underperform. Among 418 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 397 give IMAX a green thumbs-up, and 21 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 $26.98.
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