IMAX Corporation (IMAX - Free Report) delivered third-quarter 2018 adjusted earnings of 14 cents per share that beat the Zacks Consensus Estimate by 3 cents and surged 75% year over year.
Revenues of $82.1 million surpassed the Zacks Consensus Estimate of $80 million. However, revenues declined 16.9% from the year-ago quarter. The decline can be attributed to the absence of $8.7 million of revenues contributed by Inhumans television series in third-quarter 2017 coupled with lower sales type systems installations in the reported quarter.
Category-wise, Equipment and product sales were $25.3 million, down 17.6% from the year-ago quarter. Services revenues totaled $39.4 million, down 20.8%. Rentals revenues totaled $14.5 million, down 8.6%. Finance income increased 19.3% year over year to $2.9 million.
During the quarter, the company extended its partnership with Wanying Cinema Line, a subsidiary of China Resources Land — one of the biggest state-owned commercial developers to open 14 more IMAX laser theaters, bringing the total to 15.
Segment Details
IMAX network business revenues were $36.7 million, down 13.9% year over year. Strong performance of The Meg and Mission: Impossible in China collectively contributed over $32 million.
Within the segment, IMAX DMR revenues declined 13.9% to $22.4 million.
Gross box office from IMAX DMR films declined 5.6% year over year to $206.5 million in the reported quarter. The company exhibited 29 films (24 new and five carryovers) compared with 24 films (17 new and seven carryovers) exhibited in the year-ago quarter.
Greater China box office increased 30.5% year over year driven by blockbuster Hollywood and Chinese language titles. Moreover, increasing focus on releasing Chinese content in smaller cities boosted local box office revenues.
Joint revenue sharing arrangements-contingent rent was $14.3 million, down 8% from the year-ago quarter.
IMAX theatre business generated revenues of $40.7 million, down 6.5% year over year.
Within this segment, IMAX systems revenues declined 15.7% from the year-ago quarter to $23.4 million. However, theater system maintenance revenues were $12.4 million, up 7.9%. Other theater revenues surged 30.9% to $2.1 million on the back of 15 sales and 6 hybrid theaters installed in the reported quarter.
New business revenues plunged 85.7% year over year to $1.3 million. Other revenues declined 7.7% to $3.5 million.
Management noted that it is benefiting from subscription services such as AMC's new Stubs A-List, which is driving additional customers to IMAX theatres.
IMAX Corporation Price, Consensus and EPS Surprise
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IMAX Corporation (IMAX - Free Report) delivered third-quarter 2018 adjusted earnings of 14 cents per share that beat the Zacks Consensus Estimate by 3 cents and surged 75% year over year.
Revenues of $82.1 million surpassed the Zacks Consensus Estimate of $80 million. However, revenues declined 16.9% from the year-ago quarter. The decline can be attributed to the absence of $8.7 million of revenues contributed by Inhumans television series in third-quarter 2017 coupled with lower sales type systems installations in the reported quarter.
Category-wise, Equipment and product sales were $25.3 million, down 17.6% from the year-ago quarter. Services revenues totaled $39.4 million, down 20.8%. Rentals revenues totaled $14.5 million, down 8.6%. Finance income increased 19.3% year over year to $2.9 million.
During the quarter, the company extended its partnership with Wanying Cinema Line, a subsidiary of China Resources Land — one of the biggest state-owned commercial developers to open 14 more IMAX laser theaters, bringing the total to 15.
Segment Details
IMAX network business revenues were $36.7 million, down 13.9% year over year. Strong performance of The Meg and Mission: Impossible in China collectively contributed over $32 million.
Within the segment, IMAX DMR revenues declined 13.9% to $22.4 million.
Gross box office from IMAX DMR films declined 5.6% year over year to $206.5 million in the reported quarter. The company exhibited 29 films (24 new and five carryovers) compared with 24 films (17 new and seven carryovers) exhibited in the year-ago quarter.
Greater China box office increased 30.5% year over year driven by blockbuster Hollywood and Chinese language titles. Moreover, increasing focus on releasing Chinese content in smaller cities boosted local box office revenues.
Joint revenue sharing arrangements-contingent rent was $14.3 million, down 8% from the year-ago quarter.
IMAX theatre business generated revenues of $40.7 million, down 6.5% year over year.
Within this segment, IMAX systems revenues declined 15.7% from the year-ago quarter to $23.4 million. However, theater system maintenance revenues were $12.4 million, up 7.9%. Other theater revenues surged 30.9% to $2.1 million on the back of 15 sales and 6 hybrid theaters installed in the reported quarter.
New business revenues plunged 85.7% year over year to $1.3 million. Other revenues declined 7.7% to $3.5 million.
Management noted that it is benefiting from subscription services such as AMC's new Stubs A-List, which is driving additional customers to IMAX theatres.
IMAX Corporation Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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