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Imax (IMAX) Reliance on International Sales: What Investors Need to Know
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Have you looked into how Imax (IMAX - Free Report) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this entertainment technology company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of IMAX's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $92.67 million, marking an increase of 7.7% from the year-ago quarter. We will next turn our attention to dissecting IMAX's international revenue to get a clearer picture of how significant its operations are outside its main base.
Trends in IMAX's Revenue from International Markets
Of the total revenue, $2.32 million came from Latin America during the last fiscal quarter, accounting for 2.51%. This represented a surprise of -43.37% as analysts had expected the region to contribute $4.1 million to the total revenue. In comparison, the region contributed $2.95 million, or 3.23%, and $7.28 million, or 8.47%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Asia excluding Greater China contributed $22.05 million in revenue, making up 23.79% of the total revenue. When compared to the consensus estimate of $16.35 million, this meant a surprise of +34.85%. Looking back, Asia excluding Greater China contributed $16.93 million, or 18.51%, in the previous quarter, and $15.04 million, or 17.49%, in the same quarter of the previous year.
Western Europe accounted for 13.35% of the company's total revenue during the quarter, translating to $12.37 million. Revenues from this region represented a surprise of -5.56%, with Wall Street analysts collectively expecting $13.1 million. When compared to the preceding quarter and the same quarter in the previous year, Western Europe contributed $3.74 million (4.09%) and $11.08 million (12.88%) to the total revenue, respectively.
Rest of the World generated $3.87 million in revenues for the company in the last quarter, constituting 4.18% of the total. This represented a surprise of -37.75% compared to the $6.22 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of the World accounted for $6.45 million (7.06%), and in the year-ago quarter, it contributed $6.47 million (7.52%) to the total revenue.
Greater China generated $15.47 million in revenues for the company in the last quarter, constituting 16.69% of the total. This represented a surprise of -43.04% compared to the $27.16 million projected by Wall Street analysts. Comparatively, in the previous quarter, Greater China accounted for $21.32 million (23.32%), and in the year-ago quarter, it contributed $17.93 million (20.84%) to the total revenue.
Of the total revenue, $2.09 million came from Canada during the last fiscal quarter, accounting for 2.26%. This represented a surprise of -44.71% as analysts had expected the region to contribute $3.78 million to the total revenue. In comparison, the region contributed $1.69 million, or 1.84%, and $3.06 million, or 3.56%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International Markets
It is projected by analysts on Wall Street that Imax will post revenues of $82.35 million for the ongoing fiscal quarter, an increase of 4.1% from the year-ago quarter. The expected contributions from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada to this revenue are 2.9%, 14.2%, 11.7%, 5.2%, 25.6% and 3%, translating into $2.37 million, $11.67 million, $9.59 million, $4.26 million, $21.11 million and $2.49 million, respectively.
For the full year, the company is expected to generate $406.79 million in total revenue, up 15.5% from the previous year. Revenues from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada are expected to constitute 3.1% ($12.42 million), 14.5% ($58.79 million), 10.1% ($41.17 million), 5.3% ($21.43 million), 24.4% ($99.14 million) and 2.9% ($11.78 million) of the total, respectively.
Closing Remarks
Relying on global markets for revenues presents both prospects and challenges for Imax. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Over the past month, the stock has gained 10.5% versus the Zacks S&P 500 composite's 0.5% decrease. The Zacks Consumer Discretionary sector, of which Imax is a part, has risen 10.1% over the same period. The company's shares have declined 1.1% over the past three months compared to the S&P 500's 1.4% increase. Over the same period, the sector has risen 8.5%.
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Imax (IMAX) Reliance on International Sales: What Investors Need to Know
Have you looked into how Imax (IMAX - Free Report) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this entertainment technology company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of IMAX's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $92.67 million, marking an increase of 7.7% from the year-ago quarter. We will next turn our attention to dissecting IMAX's international revenue to get a clearer picture of how significant its operations are outside its main base.
Trends in IMAX's Revenue from International Markets
Of the total revenue, $2.32 million came from Latin America during the last fiscal quarter, accounting for 2.51%. This represented a surprise of -43.37% as analysts had expected the region to contribute $4.1 million to the total revenue. In comparison, the region contributed $2.95 million, or 3.23%, and $7.28 million, or 8.47%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Asia excluding Greater China contributed $22.05 million in revenue, making up 23.79% of the total revenue. When compared to the consensus estimate of $16.35 million, this meant a surprise of +34.85%. Looking back, Asia excluding Greater China contributed $16.93 million, or 18.51%, in the previous quarter, and $15.04 million, or 17.49%, in the same quarter of the previous year.
Western Europe accounted for 13.35% of the company's total revenue during the quarter, translating to $12.37 million. Revenues from this region represented a surprise of -5.56%, with Wall Street analysts collectively expecting $13.1 million. When compared to the preceding quarter and the same quarter in the previous year, Western Europe contributed $3.74 million (4.09%) and $11.08 million (12.88%) to the total revenue, respectively.
Rest of the World generated $3.87 million in revenues for the company in the last quarter, constituting 4.18% of the total. This represented a surprise of -37.75% compared to the $6.22 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of the World accounted for $6.45 million (7.06%), and in the year-ago quarter, it contributed $6.47 million (7.52%) to the total revenue.
Greater China generated $15.47 million in revenues for the company in the last quarter, constituting 16.69% of the total. This represented a surprise of -43.04% compared to the $27.16 million projected by Wall Street analysts. Comparatively, in the previous quarter, Greater China accounted for $21.32 million (23.32%), and in the year-ago quarter, it contributed $17.93 million (20.84%) to the total revenue.
Of the total revenue, $2.09 million came from Canada during the last fiscal quarter, accounting for 2.26%. This represented a surprise of -44.71% as analysts had expected the region to contribute $3.78 million to the total revenue. In comparison, the region contributed $1.69 million, or 1.84%, and $3.06 million, or 3.56%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International Markets
It is projected by analysts on Wall Street that Imax will post revenues of $82.35 million for the ongoing fiscal quarter, an increase of 4.1% from the year-ago quarter. The expected contributions from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada to this revenue are 2.9%, 14.2%, 11.7%, 5.2%, 25.6% and 3%, translating into $2.37 million, $11.67 million, $9.59 million, $4.26 million, $21.11 million and $2.49 million, respectively.For the full year, the company is expected to generate $406.79 million in total revenue, up 15.5% from the previous year. Revenues from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada are expected to constitute 3.1% ($12.42 million), 14.5% ($58.79 million), 10.1% ($41.17 million), 5.3% ($21.43 million), 24.4% ($99.14 million) and 2.9% ($11.78 million) of the total, respectively.
Closing Remarks
Relying on global markets for revenues presents both prospects and challenges for Imax. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
At the moment, Imax has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Imax's Recent Stock Market Performance
Over the past month, the stock has gained 10.5% versus the Zacks S&P 500 composite's 0.5% decrease. The Zacks Consumer Discretionary sector, of which Imax is a part, has risen 10.1% over the same period. The company's shares have declined 1.1% over the past three months compared to the S&P 500's 1.4% increase. Over the same period, the sector has risen 8.5%.