The 10-second takeaway
For the quarter ended June 30 (Q2), IMAX beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP earnings per share expanded.
Margins contracted across the board.
IMAX booked revenue of $82.3 million. The 14 analysts polled by S&P Capital IQ anticipated revenue of $77.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $70.2 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 $0.22. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share. Non-GAAP EPS of $0.22 for Q2 were 4.8% higher than the prior-year quarter's $0.21 per share. GAAP EPS of $0.17 for Q2 were 6.3% higher than the prior-year quarter's $0.16 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 53.0%, 230 basis points worse than the prior-year quarter. Operating margin was 21.1%, 130 basis points worse than the prior-year quarter. Net margin was 14.4%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $70.1 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $293.8 million. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,587 members out of 1,699 rating the stock outperform, and 112 members rating it underperform. Among 437 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 421 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 $30.82.
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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. The Motley Fool recommends Imax. The Motley Fool owns 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.