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IMAX Beats on Q2 Revenues
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IMAX Beats on Q2 Revenues

IMAX Corp. (IMAX) reported better-than-expected Q2 results, topping both earnings and revenue estimates driven by a rebound in Hollywood blockbuster releases as well as the overall global film industry.

Total revenue grew 475.4% year-over-year to $51 million versus the consensus estimate of $40.63 million. The increase in revenues was attributable to the reopening of the company’s network and a recovery in the domestic box office. (See IMAX stock charts on TipRanks)

The company reported an adjusted loss of $0.12 per share, better than the analysts’ expectations for a loss of $0.30 per share. The company reported a loss of $0.44 per share in the prior-year period.

Notably, the company reported gross margins of 50.2% during the quarter versus a negative 86.8% in the prior-year quarter.

The company said that capacity limitations have lessened in key markets globally and the IMAX Global Network is now 90% open, marking the highest level since the beginning of the COVID-19 situation.

IMAX CEO Richard L. Gelfond commented, “We believe the table is set for a dramatic rebound for blockbuster moviegoing beginning this fall and throughout 2022, as a powerful slate of Hollywood tentpoles representing many of the biggest global franchises in entertainment arrives in theaters worldwide.”

Following the upbeat Q2 results, B.Riley Financial analyst Eric Wold reiterated a Buy rating on the stock with the price target of $28 (73% upside potential).

Wold forecasts the company to report a loss of $0.25 per share during the third quarter of 2021.

Overall, the stock has a Moderate Buy consensus rating based on 6 Buys and 1 Sell. The average IMAX price target of $25.23 implies 56% upside potential from current levels. Shares of IMAX have jumped 34% over the past year.

Related News:
Calix Delivers Upbeat Q2 Results; Shares Rise
Range Resources Posts Mixed Q2 Results; Shares Drop 3.1%
Brown & Brown Posts Upbeat Results in Q2

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