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Why Is Imax (IMAX) Up 7.1% Since Last Earnings Report?
IMAXIMAX(US:IMAX) ZACKSยท2024-11-29 17:37

Core Viewpoint - IMAX Corporation reported mixed financial results for Q3 2024, with adjusted earnings beating estimates but revenues declining due to a box office slump, raising questions about future performance leading up to the next earnings release [2][21]. Financial Performance - Adjusted earnings for Q3 2024 were 35 cents per share, exceeding the Zacks Consensus Estimate by 59% and remaining flat year over year [2]. - Total revenues amounted to $91.4 million, missing estimates by 2.88% and decreasing 12% year over year [2]. Market Performance - Greater China remains the largest market for IMAX, contributing approximately 25% of overall revenues, but revenues from this region fell 24.6% year over year to $21.3 million [3]. - IMAX's box office generated $239.5 million in Q3 2024, a decrease of 31% from $347.1 million in the same period last year, attributed to a less favorable content mix [7]. Revenue Breakdown - Category-wise, revenues from image enhancement and maintenance services, technology rentals, and finance income decreased by 22.2%, 29.9%, and 9.8% year over year, while technology sales revenues increased by 44% to $26.3 million [4]. - Segment-wise, Content Solutions revenues fell 31.9% to $30.12 million, while Technology Products and Services revenues rose 3.2% to $57.9 million [5]. Operating Metrics - Gross margin contracted by 460 basis points to 55.8%, with specific declines in Content Solutions and Technology Products and Services gross margins [13]. - Adjusted EBITDA was $35.5 million, reflecting a year-over-year increase of 21.1% [14]. Cash Flow and Liquidity - Net cash provided by operating activities for the year-to-date September 2024 was $59 million, up from $55 million in the prior year [16]. - As of September 30, 2024, available liquidity was $413 million, including cash and cash equivalents of $105 million [17]. Future Guidance - IMAX expects full-year 2024 global box office to be similar to 2023, with plans to install 130-150 systems and anticipates high-single-digit revenue growth for 2025 [21].