Premium cinema technology company IMAX (NYSE: IMAX) will be reporting results tomorrow after market hours. Here’s what you need to know.
IMAX missed analysts’ revenue expectations by 11.1% last quarter, reporting revenues of $92.67 million, up 7.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is IMAX a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting IMAX’s revenue to grow 6.5% year on year to $84.23 million, a reversal from the 9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IMAX has missed Wall Street’s revenue estimates four times over the last two years.
Looking at IMAX’s peers in the media & entertainment segment, only Omnicom Group has reported results so far. It missed analysts’ revenue estimates by 0.6%, delivering year-on-year sales growth of 1.6%. The stock was down 7.3% on the results.
Read our full analysis of Omnicom Group’s earnings results here.Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the media & entertainment stocks have shown solid performance, the group has generally underperformed, with share prices down 11.3% on average over the last month. IMAX is down 18.1% during the same time and is heading into earnings with an average analyst price target of $29.40 (compared to the current share price of $22.43).
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