IMAX beats Q1 revenue, profit estimates

Overview

• Entertainment technology firm's Q1 revenue fell 6% yr/yr but beat analyst expectations

• Adjusted EPS for Q1 rose 31% yr/yr, beating analyst expectations

• Revenue decline driven by lower China box office, offset by strong growth elsewhere

Outlook

• IMAX reaffirms 2026 full-year global box office guidance of $1.4 bln

• Company expects strong box office performance from upcoming releases including The Odyssey, Dune: Part Three, and Narnia

• Company sees continued global network growth and renewed optimism among exhibitors in 2026

Result Drivers

• CHINA BOX OFFICE WEAKNESS - Co said lower box office in China, due to a record Chinese New Year in the prior year and timing of major local releases, drove revenue decline

• INTERNATIONAL GROWTH - Strong box office growth outside Greater China, led by North America and other international markets, partially offset declines

• NETWORK EXPANSION - Co continued to expand and diversify its global network with new system agreements in Australia and Japan

Company press release: ID:nBw2cV2kga

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Imax Corp is $46.00, about 23.5% above its April 29 closing price of $37.24

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

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