The 10-second takeaway
For the quarter ended March 31 (Q1), IMAX missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share stayed the same.
Margins increased across the board.
IMAX booked revenue of $49.9 million. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $53.3 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $55.6 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 $0.08. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. Non-GAAP EPS of $0.08 for Q1 were 33% higher than the prior-year quarter's $0.06 per share. GAAP EPS of $0.04 were the same as 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 52.2%, 390 basis points better than the prior-year quarter. Operating margin was 9.2%, 100 basis points better than the prior-year quarter. Net margin was 5.7%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $78.3 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $304.5 million. The average EPS estimate is $0.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,559 members out of 1,667 rating the stock outperform, and 108 members rating it underperform. Among 409 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 396 give IMAX a green thumbs-up, and 13 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 $28.14.
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