NEW YORK – IMAX Corporation (NYSE:NYSE:) reported significantly higher-than-expected earnings and revenue for the second quarter of 2024, sending its shares up 5.5% as the market reacted to the news.
The global entertainment platform reported adjusted EPS of $0.18, beating analysts' consensus of $0.08. Revenue also beat expectations, coming in at $89 million versus the $77.41 million forecast.
The company's financial performance was bolstered by strong system sales activity and the sale of the IMAX original documentary “The Blue Angels.” Cash from operations increased substantially to $35 million from $5 million in the same quarter last year.
IMAX CEO Rich Gelfond highlighted the company's strong position following the pandemic and strikes, citing an “inflection point” in its business with system installations up 20% and a record number of IMAX system signings, the most in six years.
In addition to the current quarter’s success, IMAX has raised its full-year 2024 installation guidance to between 130 and 150 systems, up from 128 systems installed in 2023. This optimistic outlook reflects the company’s strategic network expansion, particularly in key regions such as India, the Middle East and Southeast Asia.
Despite positive financial results and higher guidance for system installations, the downward move in the stock suggests that investor concerns may lie elsewhere. Gelfond remains confident, saying: “With the strikes and lingering effects of the pandemic behind us, we are in an excellent position to fully reap the benefits of our strong, asset-light business model.”
The company’s diversified content portfolio and a strong slate of upcoming films, including at least 14 films shot with IMAX cameras planned for 2025, are expected to drive continued growth. IMAX also bolstered its exhibition partnerships, notably with China’s Wanda Film, marking its largest exhibition deal in five years.
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