NEW YORK — IMAX Corporation (NYSE: NYSE:) reported a big beat in both 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 earnings per share of $0.18, beating analysts’ expectations of $0.08. Revenue also beat expectations, coming in at $89 million versus the $77.41 million expected.
The company’s financial performance was boosted by strong system sales activity and the sale of the IMAX original documentary “Blue Angels.” Cash from operations increased significantly to $35 million, up from $5 million in the same quarter last year.
IMAX CEO Rich Gelfond highlighted the company’s strong position following the pandemic and strikes, noting a “turning point” in their 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 130 to 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 the positive financial results and increased guidance for system installations, the stock’s downward movement suggests that investors’ concerns may lie elsewhere. Gelfond remains confident, stating: “With the strikes — and the lingering effects of the pandemic — firmly behind us, we are in an excellent position to realize the full benefits of our robust, asset-light business model.”
Growth is expected to continue thanks to the company’s diverse content portfolio and strong upcoming film pipeline, including at least 14 IMAX-shot films scheduled for release in 2025. IMAX has also strengthened its exhibition partnerships, most notably with China’s Wanda Film, marking its largest exhibition deal in five years.
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