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Why Is Imax (IMAX) Down 8.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Imax (IMAX - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Imax due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IMAX Corporation reported adjusted earnings of 31 cents per share in fourth-quarter 2021, beating the Zacks Consensus Estimate of earnings of 13 cents. The figure improved from a loss of 21 cents per share in the year-ago quarter.
Total revenues of $108.6 million beat the Zacks Consensus Estimate by 24.8% and surged 93.9% from the year-ago quarter’s levels.
Category-wise, technology sales, Image Enhancement & Maintenance Services and technology rentals were up 23.5%, 168.4% and 166.6% year over year to $31.6 million, $54.2 million and $20.1 million, respectively. Financial income generated revenues of $2.6 million, down 0.4% from the year-ago quarter’s levels.
Segment Details
IMAX Technology Network Business
IMAX technology network business revenues amounted to $51.3 million, up from $17.7 million reported in the year-ago quarter. The upside can be attributed to the strong performance of Hollywood releases.
Within the segment, IMAX DMR revenues increased from $10.2 million in the year-ago quarter to $31.2 million. The joint revenue-sharing arrangements-contingent rent increased from $7.5 million in the year-ago quarter to $20.1 million.
IMAX Technology Sales & Maintenance
IMAX’s technology sales & maintenance business generated revenues of $53.4 million, up 46.6% year over year. The uptick can be attributed due to the continued global reopening of the IMAX theater network and the resumption of normal operations, which led to a higher level of IMAX theater system installations.
Within this segment, IMAX systems revenues increased 15.8% from the year-ago quarter’s levels to $30.5 million. IMAX maintenance revenues increased to $20.1 million owing to the continued reopening of the IMAX network.
Joint revenue sharing arrangements-fixed fees were $1.6 million, up 89.5% year over year. Other theater revenues were $1.1 million in the reported quarter.
New Business & Others
New Business generated revenues of $1.2 million, up 55.8% year over year. Film distribution and post-production generated revenues of $1.7 million, up 46.3% year over year.
Network Growth Statistics
As of Dec 31, 2021, there were 1,683 IMAX Theater Systems operating in 87 countries and territories, including 1,599 commercial multiplexes, 12 commercial destinations and 72 institutional locations. This compares with 1,650 IMAX Theater Systems operating in 84 countries and territories as of Dec 31, 2020, including 1,562 commercial multiplexes, 12 commercial destinations and 76 institutional locations.
IMAX installed 75 systems and signed agreements for 36 systems in the year ended 2021, despite the temporary delay in major theatrical releases. As of Dec 31, 2021, the company’s backlog included 158 new IMAX with Laser systems and 92 upgrades to IMAX with Laser systems.
Operating Details
Gross margin expanded from 36.3% in the year-ago quarter to 59% in fourth-quarter 2021. Adjusted EBITDA per credit facility was $44 million versus $10 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 38.4% year over year to $34.9 million. Research & development (R&D) expenses increased 18.2% on a year-over-year basis to $1.2 million.
Operating income reached $25.6 million from the year-earlier quarter’s operating loss of $14.5 million.
Balance Sheet & Cash Flow
As of Dec 31, 2021, the company had $189.7 million in cash and cash equivalents compared with $193 million as of Sep 30, 2021. Total debt, excluding deferred financing fees, was $233.6 million as of Dec 31, 2021, compared with $241 million as of Sep 30, 2021.
Cash flow provided by operating activities was $25.65 million compared with $2.57 million used in the prior quarter. Free cash flow was $18.9 million compared with a negative free cash flow of $7.3 million in the prior quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted -21.88% due to these changes.
VGM Scores
At this time, Imax has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Imax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Imax (IMAX) Down 8.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Imax (IMAX - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Imax due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IMAX's Q4 Earnings Beat Estimates, Revenues Increase Y/Y
IMAX Corporation reported adjusted earnings of 31 cents per share in fourth-quarter 2021, beating the Zacks Consensus Estimate of earnings of 13 cents. The figure improved from a loss of 21 cents per share in the year-ago quarter.
Total revenues of $108.6 million beat the Zacks Consensus Estimate by 24.8% and surged 93.9% from the year-ago quarter’s levels.
Category-wise, technology sales, Image Enhancement & Maintenance Services and technology rentals were up 23.5%, 168.4% and 166.6% year over year to $31.6 million, $54.2 million and $20.1 million, respectively. Financial income generated revenues of $2.6 million, down 0.4% from the year-ago quarter’s levels.
Segment Details
IMAX Technology Network Business
IMAX technology network business revenues amounted to $51.3 million, up from $17.7 million reported in the year-ago quarter. The upside can be attributed to the strong performance of Hollywood releases.
Within the segment, IMAX DMR revenues increased from $10.2 million in the year-ago quarter to $31.2 million. The joint revenue-sharing arrangements-contingent rent increased from $7.5 million in the year-ago quarter to $20.1 million.
IMAX Technology Sales & Maintenance
IMAX’s technology sales & maintenance business generated revenues of $53.4 million, up 46.6% year over year. The uptick can be attributed due to the continued global reopening of the IMAX theater network and the resumption of normal operations, which led to a higher level of IMAX theater system installations.
Within this segment, IMAX systems revenues increased 15.8% from the year-ago quarter’s levels to $30.5 million. IMAX maintenance revenues increased to $20.1 million owing to the continued reopening of the IMAX network.
Joint revenue sharing arrangements-fixed fees were $1.6 million, up 89.5% year over year. Other theater revenues were $1.1 million in the reported quarter.
New Business & Others
New Business generated revenues of $1.2 million, up 55.8% year over year. Film distribution and post-production generated revenues of $1.7 million, up 46.3% year over year.
Network Growth Statistics
As of Dec 31, 2021, there were 1,683 IMAX Theater Systems operating in 87 countries and territories, including 1,599 commercial multiplexes, 12 commercial destinations and 72 institutional locations. This compares with 1,650 IMAX Theater Systems operating in 84 countries and territories as of Dec 31, 2020, including 1,562 commercial multiplexes, 12 commercial destinations and 76 institutional locations.
IMAX installed 75 systems and signed agreements for 36 systems in the year ended 2021, despite the temporary delay in major theatrical releases. As of Dec 31, 2021, the company’s backlog included 158 new IMAX with Laser systems and 92 upgrades to IMAX with Laser systems.
Operating Details
Gross margin expanded from 36.3% in the year-ago quarter to 59% in fourth-quarter 2021. Adjusted EBITDA per credit facility was $44 million versus $10 million in the year-ago period.
Selling, general & administrative (SG&A) expenses increased 38.4% year over year to $34.9 million. Research & development (R&D) expenses increased 18.2% on a year-over-year basis to $1.2 million.
Operating income reached $25.6 million from the year-earlier quarter’s operating loss of $14.5 million.
Balance Sheet & Cash Flow
As of Dec 31, 2021, the company had $189.7 million in cash and cash equivalents compared with $193 million as of Sep 30, 2021. Total debt, excluding deferred financing fees, was $233.6 million as of Dec 31, 2021, compared with $241 million as of Sep 30, 2021.
Cash flow provided by operating activities was $25.65 million compared with $2.57 million used in the prior quarter. Free cash flow was $18.9 million compared with a negative free cash flow of $7.3 million in the prior quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted -21.88% due to these changes.
VGM Scores
At this time, Imax has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Imax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.