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IMAX (IMAX) Records Second Best Opening Day on Chinese New Year
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Imax (IMAX - Free Report) recently announced that it recorded its second-best opening day in China on the occasion of the Chinese Lunar New Year with a collection of $7 million across the IMAX China network.
Frank Guo’s big-budget science fiction movie, The Wandering Earth 2, earned most of it as it totaled $6 million, which was nearly double the opening day haul for its predecessor, The Wandering Earth.
Other films that contributed to it were Zhang Yimou’s comedy thriller Full River, the children’s animated film Deep Sea, and the World War II espionage thriller Hidden Blade.
However, this box office performance was quite low compared to the 2019 Chinese New Year, which grossed $32.3 million, per CGTN, with local movies like Crazy Alien and Pegasus creating the highest opening day record for Imax.
Chinese Box Office to Aid Imax’s Top Line
Imax has had a difficult 2022 in China as the Chinese box office slumped 36% year over year due to the extended COVID restrictions, per Deadline. Imax’s revenue from China, which accounted for 21.5% of its total revenues, stood at $14.8 million in third-quarter fiscal 2022, down almost 31% year over year.
This has impacted the share price of Imax as well, as shares of the company have declined 3.4% in the past year compared with the Zacks Consumer Discretionary space, which declined 20.1%.
The recent lifting of the zero covid policy suggests that it could lead to a surge in the number of cases, which might prevent people from moving out of their homes. However, it is expected that the current increase in footfall due to the festive season and the exciting slate of movies in the pipeline could help Imax boost its top line and show moderate growth from China in the coming quarters.
Recently, Imax benefited from Avatar: The Way of Water, which is already the second-highest-grossing IMAX film in China, with more than $50 million in ticket sales.
On the heels of this blockbuster release, Imax has scheduled engaging movies that will debut in February 2023 and could gain traction from the audience. This includes Walt Disney’s (DIS - Free Report) Black Panther: Wakanda Forever and Ant-Man and The Wasp: Quantumania.
Imax also entered an agreement with China’s Wanda Films last year to install six new multiplexes across the country and relocate and upgrade three existing cinema halls. Per Business Wire, China Movie Market is expected to reach $16.5 billion by 2026 from $3.4 billion in 2020, at a staggering CAGR of 30.12%. Hence this deal could provide a great opportunity to Imax to expand its presence in China and aid growth.
Some other top-ranked stocks in the same sector are Manchester United (MANU - Free Report) and Liberty Global (LBTYA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Shares of Manchester United have gained 69.5% in the past year. The Zacks Consensus Estimate for earnings is pegged at a loss of 1 cent, which has been constant over the past 30 days.
Shares of Liberty Global have declined 18.7% in the past year. Its earnings are estimated at 49 cents per share.
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IMAX (IMAX) Records Second Best Opening Day on Chinese New Year
Imax (IMAX - Free Report) recently announced that it recorded its second-best opening day in China on the occasion of the Chinese Lunar New Year with a collection of $7 million across the IMAX China network.
Frank Guo’s big-budget science fiction movie, The Wandering Earth 2, earned most of it as it totaled $6 million, which was nearly double the opening day haul for its predecessor, The Wandering Earth.
Other films that contributed to it were Zhang Yimou’s comedy thriller Full River, the children’s animated film Deep Sea, and the World War II espionage thriller Hidden Blade.
However, this box office performance was quite low compared to the 2019 Chinese New Year, which grossed $32.3 million, per CGTN, with local movies like Crazy Alien and Pegasus creating the highest opening day record for Imax.
Chinese Box Office to Aid Imax’s Top Line
Imax has had a difficult 2022 in China as the Chinese box office slumped 36% year over year due to the extended COVID restrictions, per Deadline. Imax’s revenue from China, which accounted for 21.5% of its total revenues, stood at $14.8 million in third-quarter fiscal 2022, down almost 31% year over year.
This has impacted the share price of Imax as well, as shares of the company have declined 3.4% in the past year compared with the Zacks Consumer Discretionary space, which declined 20.1%.
The recent lifting of the zero covid policy suggests that it could lead to a surge in the number of cases, which might prevent people from moving out of their homes. However, it is expected that the current increase in footfall due to the festive season and the exciting slate of movies in the pipeline could help Imax boost its top line and show moderate growth from China in the coming quarters.
Recently, Imax benefited from Avatar: The Way of Water, which is already the second-highest-grossing IMAX film in China, with more than $50 million in ticket sales.
IMAX Corporation Price and Consensus
IMAX Corporation price-consensus-chart | IMAX Corporation Quote
On the heels of this blockbuster release, Imax has scheduled engaging movies that will debut in February 2023 and could gain traction from the audience. This includes Walt Disney’s (DIS - Free Report) Black Panther: Wakanda Forever and Ant-Man and The Wasp: Quantumania.
Imax also entered an agreement with China’s Wanda Films last year to install six new multiplexes across the country and relocate and upgrade three existing cinema halls. Per Business Wire, China Movie Market is expected to reach $16.5 billion by 2026 from $3.4 billion in 2020, at a staggering CAGR of 30.12%. Hence this deal could provide a great opportunity to Imax to expand its presence in China and aid growth.
Zack Rank & Other Stocks to Consider
Imax currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the same sector are Manchester United (MANU - Free Report) and Liberty Global (LBTYA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Shares of Manchester United have gained 69.5% in the past year. The Zacks Consensus Estimate for earnings is pegged at a loss of 1 cent, which has been constant over the past 30 days.
Shares of Liberty Global have declined 18.7% in the past year. Its earnings are estimated at 49 cents per share.