We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IMAX Rides on Record-Breaking Weekend Box Office in China
Read MoreHide Full Article
IMAX Corporation (IMAX - Free Report) recently announced that the company has collected a record-breaking $13 million in the opening weekend of National Day Golden Week holiday in China, spanning Oct 1-8 this year.
Jiang Ziya: Legend of Deification has recorded the biggest opening weekend ever for an animated film in China earning $11.5 million. Beijing Culture's My People, My Homeland, Tencent's Vanguard and Lian Ray Picture's Leap are few of the other films playing over the holiday period.
Markedly, the company grossed $53.2 million at the box office in China since theatres began to reopen in late July. Nine of the top 10 grossing multiplexes in the country since the reopening include IMAX screens.
Huayi Brothers' The Eight Hundred has earned $17 million for the company and currently stands as the highest grossing film of the year. IMAX theaters delivered strong results even with a 50% capacity limitation in China, and captured 6.5% of the film's overall box office, followed by 7% for Mulan, despite accounting for only 1% of screens.
Moreover, Warner Bros. Pictures and Christopher Nolan’s Tenet topped the weekend opening in IMAX of Dunkirk by 15% and Interstellar by 27%, despite continued capacity limitations.
In June, IMAX partnered with Universal Beijing Resort to open China’s first-ever theme park destination IMAX theatre in China. Per the terms of the deal, the company will bring IMAX with Laser projection system to Universal CITYWALK Cinema, which is set to open in 2021.
Notably, the company partnered with South Korean cinema chain CGV to add 40 new theaters in Greater China. This deal focuses on Tier 1 and Tier 2 markets in China and is expected to boost demand for IMAX with Laser projections systems.
Moreover, IMAX’s largest, single, international partnership with Wanda Film for 359 theater systems in Greater China highlights its expansion strategy.
The company’s expanding presence in the country is expected to drive the top line in the days ahead. This is because of IMAX’s biggest offerings, including Wonder Woman 1984, No Time To Die (newest instalment in the James Bond franchise), Paramount’s Top Gun: Maverick and Detective Chinatown 3, as well as local language titles are set to release in China later this year.
COVID-19 Woes Expected to Subside
The company’s revenues have been dampened by the pandemic-induced closure of theaters in the United States and other countries so far in 2020.
In second-quarter 2020, IMAX DMR revenues were down 98.6% year over year to $546K due to 99% decrease in IMAX global box office revenues connected to COVID-19-related theater closures. Moreover, theater system installations fell significantly due to the pandemic.
However, IMAX is well positioned to make a comeback, driven by its strong release slate for the second half of the year with 97% of its theatre network in China now reopened and average weekly attendance reaching 80% of the level seen in the second half of 2019.
Further, the company is expected to gain from the growing traction for IMAX with Laser and the launch of new pricing programs. These are expected to increase foot traffic, thereby driving IMAX’s top-line growth in the long haul.
As of Jun 31, 2020, IMAX had signed deals with AMC Entertainment Holdings (AMC - Free Report) , Cineworld Group PLC and Les Cinemas Pathe Gaumont, among others, for a total of 140 new theaters, 157 upgrades to existing IMAX theaters and 52 upgrades to current arrangements in the company’s backlog.
Long-term earnings growth rate for YETI and Nike is pegged at 14.2% and 16.6%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
IMAX Rides on Record-Breaking Weekend Box Office in China
IMAX Corporation (IMAX - Free Report) recently announced that the company has collected a record-breaking $13 million in the opening weekend of National Day Golden Week holiday in China, spanning Oct 1-8 this year.
Jiang Ziya: Legend of Deification has recorded the biggest opening weekend ever for an animated film in China earning $11.5 million. Beijing Culture's My People, My Homeland, Tencent's Vanguard and Lian Ray Picture's Leap are few of the other films playing over the holiday period.
Markedly, the company grossed $53.2 million at the box office in China since theatres began to reopen in late July. Nine of the top 10 grossing multiplexes in the country since the reopening include IMAX screens.
Huayi Brothers' The Eight Hundred has earned $17 million for the company and currently stands as the highest grossing film of the year. IMAX theaters delivered strong results even with a 50% capacity limitation in China, and captured 6.5% of the film's overall box office, followed by 7% for Mulan, despite accounting for only 1% of screens.
Moreover, Warner Bros. Pictures and Christopher Nolan’s Tenet topped the weekend opening in IMAX of Dunkirk by 15% and Interstellar by 27%, despite continued capacity limitations.
IMAX Corporation Price and Consensus
IMAX Corporation price-consensus-chart | IMAX Corporation Quote
Footprint Expansion in China Holds Promise
In June, IMAX partnered with Universal Beijing Resort to open China’s first-ever theme park destination IMAX theatre in China. Per the terms of the deal, the company will bring IMAX with Laser projection system to Universal CITYWALK Cinema, which is set to open in 2021.
Notably, the company partnered with South Korean cinema chain CGV to add 40 new theaters in Greater China. This deal focuses on Tier 1 and Tier 2 markets in China and is expected to boost demand for IMAX with Laser projections systems.
Moreover, IMAX’s largest, single, international partnership with Wanda Film for 359 theater systems in Greater China highlights its expansion strategy.
The company’s expanding presence in the country is expected to drive the top line in the days ahead. This is because of IMAX’s biggest offerings, including Wonder Woman 1984, No Time To Die (newest instalment in the James Bond franchise), Paramount’s Top Gun: Maverick and Detective Chinatown 3, as well as local language titles are set to release in China later this year.
COVID-19 Woes Expected to Subside
The company’s revenues have been dampened by the pandemic-induced closure of theaters in the United States and other countries so far in 2020.
In second-quarter 2020, IMAX DMR revenues were down 98.6% year over year to $546K due to 99% decrease in IMAX global box office revenues connected to COVID-19-related theater closures. Moreover, theater system installations fell significantly due to the pandemic.
However, IMAX is well positioned to make a comeback, driven by its strong release slate for the second half of the year with 97% of its theatre network in China now reopened and average weekly attendance reaching 80% of the level seen in the second half of 2019.
Further, the company is expected to gain from the growing traction for IMAX with Laser and the launch of new pricing programs. These are expected to increase foot traffic, thereby driving IMAX’s top-line growth in the long haul.
As of Jun 31, 2020, IMAX had signed deals with AMC Entertainment Holdings (AMC - Free Report) , Cineworld Group PLC and Les Cinemas Pathe Gaumont, among others, for a total of 140 new theaters, 157 upgrades to existing IMAX theaters and 52 upgrades to current arrangements in the company’s backlog.
Zacks Rank & Stocks to Consider
Currently, IMAX has a Zacks Rank #3 (Hold).
Couple of better-ranked stocks in the broader Consumer Discretionary sector are YETI Holdings, Inc. (YETI - Free Report) and NIKE, Inc. (NKE - Free Report) both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for YETI and Nike is pegged at 14.2% and 16.6%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>