Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Marvel Continues to Power IMAX

By Travis Hoium - May 7, 2013 at 6:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Iron Man 3 shows Marvel's power in IMAX.

The marriage between Marvel and Disney ( DIS -1.90% ) has been a smashing success for Disney, but there's another company that is singing Marvel's praises as well -- giant theater maker IMAX ( IMAX -3.46% ). Yesterday, the company announced that Iron Man 3 has already generated $39.3 million in global box office after just one weekend in the U.S. and 10 days internationally. 

To put this into perspective, IMAX box office during the entire first quarter was $128.7 million, just over four times what Iron Man 3 has done in a short run. 

Last year, it was The Avengers that powered IMAX's year and this year Iron Man 3 shows the way. With Disney pumping out Marvel movies every year, there is even more upside for IMAX and Disney if they so choose. So far, it hasn't been announced that The Wolverine, Thor: The Dark World, or Captain America: The Winter Soldier will be released in IMAX over the next year, but it would make sense to bring them into the fold. Investors also have the next series of Star Wars films to look forward to because they'll likely be shown in IMAX as well. 

3-D's fleeting hope
IMAX has also begun putting RealD (NYSE: RLD) in the rear-view mirror when it comes to premium theater profits. It's been proven that people are willing to pay extra for a premium movie experience, but RealD's all-3D all the time isn't what people are looking for. If you're willing to pay for the experience, it has to be worthwhile and that's what IMAX has provided in both 2-D and 3-D. 

Foolish bottom line
IMAX needs blockbuster films to power earnings and Marvel has been a steady provider of these films recently. Now, investors just need to hope that Disney and IMAX extend that partnership to the full Marvel and Lucasfilm lineup of movies because that could drive IMAX's earnings for the next five years. 

What drives Disney forward?

 
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

IMAX Corporation Stock Quote
IMAX Corporation
IMAX
$15.92 (-3.46%) $0.57
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$142.15 (-1.90%) $-2.75

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
656%
 
S&P 500 Returns
144%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/01/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.