IMAX Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

IMAX (NYS: IMAX) reported earnings on April 27. Here are the numbers you need to know.

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying 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.

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