B. Riley Raises IMAX Estimates on Strong Box Office Performance
IMAX Corporation (NYSE:IMAX) received higher financial estimates and an increased price target of $64 from B. Riley Securities following a strong box office performance during the third quarter. The upward revision was driven by strong ticket sales in September, notably for the film "The Odyssey," which generated more than $534 million globally across the company's theater network during the month. Other titles like "Resident Evil" and "Avengers Endgame: Encore" also contributed to the positive momentum.
The updated projections from the firm now forecast third-quarter revenue of $170 million, which is expected to easily surpass average market expectations. Adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) are projected to reach $95 million. This represents an 80% growth rate compared to the prior period, supported by a record-high operating margin of 56%. B. Riley Securities maintained its buy rating on the stock.
Looking ahead, the upcoming fourth-quarter film slate is expected to provide further growth opportunities. Market observers view the upcoming release of "Dune: Part Three" as the next major catalyst for the company's business fundamentals. IMAX shares rose 1.70% to $52.33 in Thursday trading, positioned within their 52-week trading range of $30.74 to $57.73, while short interest currently represents 12.1% of the company's outstanding float.
Key points
- B. Riley Securities raised its price target for IMAX Corporation (NYSE:IMAX) to $64 with a buy rating.
- Strong September ticket sales for "The Odyssey" surpassed $534 million globally across the IMAX network.
- Third-quarter revenue is projected to reach $170 million, topping consensus expectations.
- Adjusted EBITDA is estimated at $95 million, reflecting 80% growth and a record 56% margin.
- The upcoming release of "Dune: Part Three" is expected to serve as a key catalyst for fourth-quarter growth.
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Why did B. Riley Securities raise its estimates for IMAX?
The firm increased its estimates due to strong box office results in the third quarter, driven by September outperformance from "The Odyssey" along with solid numbers for "Resident Evil" and "Avengers Endgame: Encore."
What are the new financial projections for IMAX?
IMAX is projected to post third-quarter revenue of $170 million, exceeding consensus expectations. Adjusted EBITDA is expected to reach $95 million, representing 80% growth on a record 56% margin.
What is the next major growth catalyst for IMAX?
Analysts point to the upcoming fourth-quarter film slate, particularly the release of "Dune: Part Three," as the next major catalyst for the company's business fundamentals and shares.