IMAX Increases Sales but Misses Revenue Estimates

Seth Jayson, The Motley Fool
Updated

IMAX (NYS: IMAX) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), IMAX missed estimates on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.


Margins increased across the board.

Revenue details
IMAX chalked up revenue of $70.2 million. The 14 analysts polled by S&P Capital IQ predicted sales of $72.0 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $57.2 million.

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 $0.21. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.16 for Q2 were 433% higher than the prior-year quarter's $0.03 per share.

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 55.3%, 930 basis points better than the prior-year quarter. Operating margin was 22.4%, 1,460 basis points better than the prior-year quarter. Net margin was 15.8%, 1,260 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $84.1 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $295.0 million. The average EPS estimate is $0.85.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,493 members out of 1,602 rating the stock outperform, and 109 members rating it underperform. Among 401 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 380 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 $26.39.

Over the decades, small-cap stocks like IMAX have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

The article IMAX Increases Sales but Misses Revenue Estimates originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement