IMAX Corporation (IMAX, Financial) announced a robust financial performance for the first quarter of 2025, reporting revenue of $86.7 million, surpassing analyst expectations of $84.2 million. This marks a strong start to the year for the company, driven by significant growth in global box office earnings and an increase in system sales and installations.
According to CEO Rich Gelfond, IMAX is poised for sustained growth, bolstered by an impressive lineup of global releases planned for the coming years and heightened demand from movie exhibitors. This growth trajectory is reflected in the company's performance across several strategic areas, including local language productions and alternative content, which have shown considerable gains.
IMAX witnessed a notable performance in the Chinese market, with a record-setting Chinese New Year season contributing to the company's success. Despite a slower performance from the Hollywood sector initially, IMAX's diverse content offerings have more than compensated, positioning the company to capitalize on promising future trends in global content delivery.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Imax Corp (IMAX, Financial) is $30.40 with a high estimate of $36.00 and a low estimate of $16.00. The average target implies an upside of 26.14% from the current price of $24.10. More detailed estimate data can be found on the Imax Corp (IMAX) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Imax Corp's (IMAX, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Imax Corp (IMAX, Financial) in one year is $23.23, suggesting a downside of 3.61% from the current price of $24.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Imax Corp (IMAX) Summary page.
Key Business Developments
Release Date: February 19, 2025
- Adjusted EBITDA (Q4 2024): $37 million, up 48% year-over-year.
- Adjusted EPS (Q4 2024): $0.27, up 59% year-over-year.
- Full Year Revenue (2024): $352 million.
- Adjusted EBITDA Margin (2024): 39%.
- Operating Cash Flow (2024): $71 million, a 21% improvement year-over-year.
- System Installations (2024): 146 systems, with 57% under joint revenue sharing arrangements.
- Q4 Revenue (2024): $93 million, up 8% year-over-year.
- Content Solutions Revenue (Q4 2024): $26 million, up 34% year-over-year.
- Technology Products and Services Revenue (Q4 2024): $64 million, up 2% year-over-year.
- Q4 Gross Margin (2024): 52%.
- SG&A (Q4 2024): $27 million, a $2 million improvement year-over-year.
- Cash Position (End of 2024): $101 million.
- Debt (End of 2024): $269 million.
- Capital Expenditure (2024): $41 million.
- Share Repurchases (2024): $18 million.
- 2025 Box Office Guidance: Over $1.2 billion.
- System Installation Guidance (2025): 145 to 160 systems.
- Adjusted EBITDA Margin Guidance (2025): Minimum 40%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Imax Corp (IMAX, Financial) reported a record-breaking Chinese New Year slate, with more than $120 million in box office revenue, indicating strong demand in China.
- The company expanded its global network, securing partnerships with major exhibitors like Wanda and AMC, and entered agreements with new partners across North America.
- Imax Corp (IMAX) achieved solid financial results for the fourth quarter, with adjusted EBITDA up 48% to $37 million and adjusted EPS up 59% to $0.27 per share.
- The company has a promising film slate for 2025, including major titles like Avatar 3, Mission Impossible, and Marvel's Thunderbolts, which are expected to drive box office growth.
- Imax Corp (IMAX) successfully negotiated a first-of-its-kind partnership with Netflix for exclusive IMAX releases, showcasing its leverage and unique standing in the market.
Negative Points
- The company faced a significant headwind in 2024 due to softness in the China box office, impacting overall financial performance.
- Despite strong results, the fourth-quarter box office fell short of expectations due to underperformance in China and a softer-than-expected Christmas holiday period.
- Imax Corp (IMAX) dealt with headwinds from an uneven strike-impacted slate and weak foreign currency as the U.S. dollar strengthened.
- The company has a convertible senior note due in April 2026, which may require strategic financial planning for maturity.
- There is uncertainty regarding the impact of the 'Ne Zha effect' on future business in China, as the extent of its influence on screen signings and market share is still unknown.
