IMAX, which has weathered a slow summer at the box office, reported a second-quarter profit and revenue that surpassed expectations.
The company’s stock has fallen 15.31 percent this year so far, but shares went up 2.9 percent, to $31, in after-hours trading.
In the latest period, ending June 30, IMAX reported a significant drop in profit: $7.8 million dollars, or 11 cents per share, compared with a year-earlier profit of $24.4 million dollars, or 34 cents per share.
Revenue fell 14.5 percent, to $91.7 million, compared to a year ago.
Analysts on average expected a per-share profit of 17 cents on revenue of $86.7 million. Adjusted earnings per share were 18 cents per share.
Experts predicted a weak Q2 after box office receipts have declined 20 percent during the period, which has been called a summer slump at the box office.
IMAX CEO Richard Gelfond boldly proclaimed during the company’s Q1 earnings call that a big second quarter was coming, due to hits including Disney’s “The Jungle Book” and Disney-Marvel’s “Captain America.”
But that did not come to pass.
On Wednesday, Gelfond emphasized the future of the company, noting that more recent deal signings will lead to more IMAX screen installs, “which will lead to more box office, and, ultimately, to greater revenue.”
He also pointed to greater overall box office receipts, expected in the future months and years.
There were 95 theaters signed in the second quarter, he said, adding, “We have signed nearly as many deals in the first half of 2016 as we did in all of 2015.”
The momentum has resulted in a record backlog, according to Gelfond, which includes a 40-theater full revenue-share agreement with Guangzhou JinYi Media Corporation, a 25-theater deal with AMC Theaters and more multi-theater agreements with other exhibition partners, which “improves visibility into installations and ultimately revenue over the next several years.”
As a result, the company is raising its number of installations — to 155 theaters, up from IMAX’s guidance range of 135 to 140 theaters and compared to the company’s original 2016 install guidance range of 115 to 120 that was set late last year.[graphiq id=”lWnGNAChUQl” title=”Imax (IMAX) Quarterly Revenue” width=”650” height=”502” url=”https://w.graphiq.com/w/lWnGNAChUQl” link=”https://www.graphiq.com” link_text=”Visualization by Graphiq” ]
The big-screen company’s revenue growth in Q1 was as large as its screens, when IMAX reported a 48 percent year-over-year sales increase, thanks primarily to strong box office figures.
IMAX hauled in $92.1 million at its top line in the first quarter of this year, up nearly $30 million from Q1 2015’s $62.1 million take, and blew away Wall Street’s sales figure for the most recent three-month period — thanks to “Deadpool” and “Batman v Superman.”