NEW YORK - IMAX Corporation (NYSE: NYSE:IMAX) reported a significant beat on both earnings and revenue for the second quarter of 2024, prompting its shares to rise by 5.5% as the market reacted to the news.
The global entertainment platform announced an adjusted EPS of $0.18, surpassing the analyst consensus of $0.08. Revenue also exceeded expectations, reaching $89 million against a forecasted $77.41 million.
The company's financial performance was bolstered by robust system sales activity and the sale of the IMAX original documentary "The Blue Angels." Cash from Operations saw a substantial increase, climbing to $35 million, up from $5 million in the same quarter last year.
IMAX's CEO Rich Gelfond highlighted the company's strong position post-pandemic and strikes, citing an "inflection point" in their business with system installations up by 20% and a record number of IMAX system signings—the most in six years.
In addition to the current quarter's success, IMAX raised its full-year 2024 installation guidance to 130 to 150 systems, an uptick from the 128 systems installed in 2023. This optimistic outlook reflects the company's strategic network expansion, particularly in key regions such as India, the Middle East, and Southeast Asia.
Despite the positive financial results and the raised guidance for system installations, the stock's downward movement suggests investor concerns may lie elsewhere. Gelfond remains confident, stating, "With the strikes — and the lingering effects of the pandemic — firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-lite business model."
The company's diversified content portfolio and a strong slate of upcoming films, including at least 14 films shot with IMAX cameras slated for 2025, are expected to drive continued growth. IMAX also reinforced its exhibition partnerships, notably with China's Wanda Film, marking its biggest exhibition agreement in five years.
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