Have you assessed how the international operations of Imax (IMAX Quick QuoteIMAX - Free Report) performed in the quarter ended September 2024? For this entertainment technology company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Our review of IMAX's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $91.45 million, marking a decrease of 12% from the year-ago quarter. We will next turn our attention to dissecting IMAX's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Look into IMAX's International Revenue Streams

Greater China accounted for 23.32% of the company's total revenue during the quarter, translating to $21.32 million. Revenues from this region represented a surprise of -11.56%, with Wall Street analysts collectively expecting $24.11 million. When compared to the preceding quarter and the same quarter in the previous year, Greater China contributed $22.75 million (25.57%) and $28.3 million (27.23%) to the total revenue, respectively.

Of the total revenue, $16.93 million came from Asia excluding Greater China during the last fiscal quarter, accounting for 18.51%. This represented a surprise of +23.76% as analysts had expected the region to contribute $13.68 million to the total revenue. In comparison, the region contributed $9.59 million, or 10.78%, and $18.04 million, or 17.36%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Western Europe contributed $3.74 million in revenue, making up 4.09% of the total revenue. When compared to the consensus estimate of $13.39 million, this meant a surprise of -72.06%. Looking back, Western Europe contributed $10.51 million, or 11.81%, in the previous quarter, and $13.85 million, or 13.33%, in the same quarter of the previous year.

Rest of the World generated $6.45 million in revenues for the company in the last quarter, constituting 7.06% of the total. This represented a surprise of +41.82% compared to the $4.55 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of the World accounted for $2.4 million (2.70%), and in the year-ago quarter, it contributed $4.04 million (3.88%) to the total revenue.

Latin America generated $2.95 million in revenues for the company in the last quarter, constituting 3.23% of the total. This represented a surprise of -7.69% compared to the $3.2 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $2.26 million (2.54%), and in the year-ago quarter, it contributed $2.07 million (1.99%) to the total revenue.

Canada accounted for 1.84% of the company's total revenue during the quarter, translating to $1.69 million. Revenues from this region represented a surprise of -55.49%, with Wall Street analysts collectively expecting $3.79 million. When compared to the preceding quarter and the same quarter in the previous year, Canada contributed $3.16 million (3.55%) and $4.39 million (4.22%) to the total revenue, respectively.

International Market Revenue Projections

It is projected by analysts on Wall Street that Imax will post revenues of $119.48 million for the ongoing fiscal quarter, an increase of 38.9% from the year-ago quarter. The expected contributions from Greater China, Asia excluding Greater China, Western Europe, Rest of the World, Latin America and Canada to this revenue are 23.1%, 12.7%, 13.3%, 4.7%, 3.5% and 3.7%, translating into $27.63 million, $15.14 million, $15.85 million, $5.56 million, $4.12 million and $4.36 million, respectively.

For the full year, a total revenue of $379.59 million is expected for the company, reflecting an increase of 1.3% from the year before. The revenues from Greater China, Asia excluding Greater China, Western Europe, Rest of the World, Latin America and Canada are expected to make up 25.3%, 12.5%, 14.2%, 4.3%, 2.9% and 3.6% of this total, corresponding to $95.94 million, $47.53 million, $53.94 million, $16.4 million, $11.04 million and $13.72 million respectively.

Concluding Remarks

Imax's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Currently, Imax holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Imax's Recent Stock Market Performance

Over the past month, the stock has gained 23.3% versus the Zacks S&P 500 composite's 0.4% increase. The Zacks Consumer Discretionary sector, of which Imax is a part, has risen 2.3% over the same period. The company's shares have increased 20.5% over the past three months compared to the S&P 500's 5.5% increase. Over the same period, the sector has risen 10.2%.