We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IMAX's Growth Prospects Hindered by Streaming Challenges
Read MoreHide Full Article
On Dec 27, 2016, we issued an updated report on IMAX Corp. (IMAX - Free Report) .
The company’s third-quarter 2016 earnings had surpassed the Zacks Consensus Estimate by a penny. However, earnings declined significantly on a year-over-year basis. The slump in bottom-line performance can be attributed to lower revenues due to lack of box office hits. IMAX has been struggling to boost its top line, since a number of movies released in the past few months have underperformed.
However, the latest Star Wars movie – Rouge One – is anticipated to provide the much needed respite for the company. Per reports, this movie has been doing good business, which can also be attributed to its release during the holiday season.
Concerns
A major concern for movie theatre companies is the speculation that filmmakers might opt for making their content available online, at a premium, within almost two weeks of its release. If implemented, this change can significantly impact the revenue of companies like IMAX. Online video streaming and piracy have become huge concerns for the movie industry. Several movie houses have reported that revenues have been affected adversely due to lack of effective measures against piracy and the easy availability of content online.
Moves like making content available online within a short time span of a movies' release is believed to pose a threat to companies like IMAX, AMC Holdings Inc. (AMC - Free Report) , Regal Entertainment Group , and The Marcus Corp. (MCS - Free Report) . IMAX has however outperformed the broader Zacks rank Movie/TV Production/Distribution industry over the past three months. The company gained 7.31%, while the industry gained only 5.43% over the same period.
However, IMAX continues to make efforts to expand across the globe, with new partnerships and deals. Some of the new agreements of the company include those with Shanghai Film Corporation and SFC-Bailian Cinema Management Co., Ltd. (SFC-Bailian), Les Cinemas Gaumont Pathe and Wanda Cinema Line Corp. The company is likely to benefit from these deals in the future.
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IMAX's Growth Prospects Hindered by Streaming Challenges
On Dec 27, 2016, we issued an updated report on IMAX Corp. (IMAX - Free Report) .
The company’s third-quarter 2016 earnings had surpassed the Zacks Consensus Estimate by a penny. However, earnings declined significantly on a year-over-year basis. The slump in bottom-line performance can be attributed to lower revenues due to lack of box office hits. IMAX has been struggling to boost its top line, since a number of movies released in the past few months have underperformed.
However, the latest Star Wars movie – Rouge One – is anticipated to provide the much needed respite for the company. Per reports, this movie has been doing good business, which can also be attributed to its release during the holiday season.
Concerns
A major concern for movie theatre companies is the speculation that filmmakers might opt for making their content available online, at a premium, within almost two weeks of its release. If implemented, this change can significantly impact the revenue of companies like IMAX. Online video streaming and piracy have become huge concerns for the movie industry. Several movie houses have reported that revenues have been affected adversely due to lack of effective measures against piracy and the easy availability of content online.
Moves like making content available online within a short time span of a movies' release is believed to pose a threat to companies like IMAX, AMC Holdings Inc. (AMC - Free Report) , Regal Entertainment Group , and The Marcus Corp. (MCS - Free Report) . IMAX has however outperformed the broader Zacks rank Movie/TV Production/Distribution industry over the past three months. The company gained 7.31%, while the industry gained only 5.43% over the same period.
However, IMAX continues to make efforts to expand across the globe, with new partnerships and deals. Some of the new agreements of the company include those with Shanghai Film Corporation and SFC-Bailian Cinema Management Co., Ltd. (SFC-Bailian), Les Cinemas Gaumont Pathe and Wanda Cinema Line Corp. The company is likely to benefit from these deals in the future.
Zacks Rank
IMAX carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>