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Why Is Imax Corp (IMAX) Up 9% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Imax Corporation (IMAX - Free Report) . Shares have added nearly 9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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.
Fourth quarter earnings
IMAX's fourth quarter earnings per share of $0.13 were a penny ahead of the Zacks Consensus Estimate.
Total revenue was $106.9 million, down 10.4% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $98.2 million. Adjusted EBITDA in the reported quarter was $96.2 million and adjusted EBITDA margin was 38.3%.
Category wise, Equipment and product revenues were $41.3 million, down 10.4%, Services revenues totaled $44 million, down 4.9%, Rentals revenue totaled $18.8 million, down 23.8%, Financial income was $2.5 million, up 8.7% and Other revenues were $0.3 million.
Segment wise Breakup
IMAX Theater Systems generated $40.1 million, down 8.4% year over year. Within this segment, IMAX system Sales and sales-type leases were $31 million, down 6.1%, Ongoing rent, fees, and finance income was $4 million, down 10.4% and Other revenues were $5 million, down 19.5%.
Theater System Maintenancerevenues were $10.4 million, up 8.3% year over year. Joint Revenue Sharing Arrangements generated $24.5 million, down 23.2%.
Film segment revenues were $32 million, down 6.3% year over year. Within this segment, Production and IMAX DMR revenues were $27.6 million, down 13.5%. Film distribution and post-production revenues jumped two fold year over year to $4.3 million.
In the fourth quarter of 2016, net cash generated from operating activity was $32.6 million compared with $77.9 million in the prior-year quarter. Free cash flow, in the reported quarter was $6.2 million compared with $13 million in the prior-year quarter. At the end of 2016, IMAX had $204.8 million of cash and $27.3 million of debt outstanding compared with $317.4 million and $29.3 million, respectively, at the end of 2015.
Network Growth Statistics
At the end of 2016, IMAX operates 1,215 theaters compared with 1,061 in 2015. In 2016, IMAX installed 182 theaters (including 16 upgrades) as against 154 (including 18 upgrades) in 2015. The company has signed 319 theatre agreements in 2016 compared with 138 in 2015. As of Dec 31, 2016, the total theater count in backlog was 498 compared with 372 as of Dec 31, 2015.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 34.4% due to these changes.
At this time, Imax Corp's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. Charting a somewhat similar path, 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 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.
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Why Is Imax Corp (IMAX) Up 9% Since the Last Earnings Report?
A month has gone by since the last earnings report for Imax Corporation (IMAX - Free Report) . Shares have added nearly 9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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.
Fourth quarter earnings
IMAX's fourth quarter earnings per share of $0.13 were a penny ahead of the Zacks Consensus Estimate.
Total revenue was $106.9 million, down 10.4% year over year. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $98.2 million. Adjusted EBITDA in the reported quarter was $96.2 million and adjusted EBITDA margin was 38.3%.
Category wise, Equipment and product revenues were $41.3 million, down 10.4%, Services revenues totaled $44 million, down 4.9%, Rentals revenue totaled $18.8 million, down 23.8%, Financial income was $2.5 million, up 8.7% and Other revenues were $0.3 million.
Segment wise Breakup
IMAX Theater Systems generated $40.1 million, down 8.4% year over year. Within this segment, IMAX system Sales and sales-type leases were $31 million, down 6.1%, Ongoing rent, fees, and finance income was $4 million, down 10.4% and Other revenues were $5 million, down 19.5%.
Theater System Maintenancerevenues were $10.4 million, up 8.3% year over year. Joint Revenue Sharing Arrangements generated $24.5 million, down 23.2%.
Film segment revenues were $32 million, down 6.3% year over year. Within this segment, Production and IMAX DMR revenues were $27.6 million, down 13.5%. Film distribution and post-production revenues jumped two fold year over year to $4.3 million.
In the fourth quarter of 2016, net cash generated from operating activity was $32.6 million compared with $77.9 million in the prior-year quarter. Free cash flow, in the reported quarter was $6.2 million compared with $13 million in the prior-year quarter. At the end of 2016, IMAX had $204.8 million of cash and $27.3 million of debt outstanding compared with $317.4 million and $29.3 million, respectively, at the end of 2015.
Network Growth Statistics
At the end of 2016, IMAX operates 1,215 theaters compared with 1,061 in 2015. In 2016, IMAX installed 182 theaters (including 16 upgrades) as against 154 (including 18 upgrades) in 2015. The company has signed 319 theatre agreements in 2016 compared with 138 in 2015. As of Dec 31, 2016, the total theater count in backlog was 498 compared with 372 as of Dec 31, 2015.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 34.4% due to these changes.
Imax Corporation Price and Consensus
Imax Corporation Price and Consensus | Imax Corporation Quote
VGM Scores
At this time, Imax Corp's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. Charting a somewhat similar path, 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 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.