IMAX Poised to Gain from Hollywood Releases, 3D Line-Up, On Nov 14, 2014, we issued an updated research report on IMAX Corp. (IMAX). Blockbuster Hollywood releases, increasing number of theater installations, higher backlogs and a growing presence in China will continue to drive the company’s growth going forward.
IMAX has delivered positive earnings surprises in three quarters last year, with an average beat of 7.22%. In third-quarter 2014, the company’s top and bottom lines outpaced the respective Zacks Consensus Estimate.
IMAX is set to garner strong box-office revenues on the back of its impressive 3D movie line-up. Recently, the company made its biggest-ever screening of the Christopher Nolan movie, Interstellar. Globally, the film released across 770 IMAX giant screens and garnered $20.5 million in the opening weekend.
In addition, IMAX announced eight movie screenings in 2015 which also include The Avengers: Age of Ultron. Meanwhile, the growing popularity of 3D movies will continue to boost top-line growth while moving ahead.
Notably, IMAX announced a content delivery agreement with Wasu Digital TV Media Group as part of the IMAX TCL home theater initiative. The company also entered into a multi-picture agreement with The Walt Disney Company (DIS).
Recently, IMAX struck a deal with China’s leading movie distributor -- Bona Film Group Ltd. (BONA)-owned Bona International Cineplex Investment and Management Co. Ltd.) – to launch three more IMAX theaters in the country.
Despite a strong backlog of 419 theaters, IMAX has given a tepid installation guidance of around 112 systems for 2014. The company’s business model is gradually shifting from equipment to box-office releases. As a result, it is becoming increasingly dependent on the success of Hollywood films. The company’s future performance now largely depends on its selection of movies and their performance in theaters.
