Roth Capital Issues Pessimistic Forecast for IMAX Earnings

IMAX Co. (NYSE:IMAX) – Equities research analysts at Roth Capital decreased their FY2024 earnings per share (EPS) estimates for shares of IMAX in a note issued to investors on Wednesday, January 22nd. Roth Capital analyst E. Handler now expects that the company will earn $0.58 per share for the year, down from their previous forecast of $0.71. The consensus estimate for IMAX’s current full-year earnings is $0.75 per share. Roth Capital also issued estimates for IMAX’s Q2 2025 earnings at $0.27 EPS and FY2026 earnings at $1.16 EPS.

IMAX (NYSE:IMAX) last issued its earnings results on Wednesday, October 30th. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.23 by $0.12. The firm had revenue of $91.50 million during the quarter, compared to analysts’ expectations of $93.71 million. IMAX had a return on equity of 7.53% and a net margin of 6.74%. IMAX’s quarterly revenue was down 11.9% compared to the same quarter last year. During the same period last year, the business earned $0.27 earnings per share.

Other research analysts have also recently issued research reports about the stock. Wedbush restated an “outperform” rating and set a $32.00 price target on shares of IMAX in a research note on Friday, January 17th. StockNews.com raised IMAX from a “hold” rating to a “buy” rating in a research note on Wednesday. Barrington Research reiterated an “outperform” rating and set a $30.00 price objective on shares of IMAX in a research note on Friday, January 10th. Benchmark restated a “buy” rating and issued a $30.00 target price on shares of IMAX in a research note on Friday, January 17th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $28.00 target price on shares of IMAX in a research report on Thursday, January 16th. One investment analyst has rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $28.13.

IMAX Stock Performance

NYSE:IMAX opened at $23.53 on Friday. The company has a market capitalization of $1.24 billion, a price-to-earnings ratio of 53.48, a PEG ratio of 1.29 and a beta of 1.24. The company has a 50-day moving average of $24.77 and a 200-day moving average of $22.07. IMAX has a 52 week low of $13.20 and a 52 week high of $26.84.

Insiders Place Their Bets

In related news, CFO Natasha Fernandes sold 2,957 shares of the firm’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $25.52, for a total value of $75,462.64. Following the transaction, the chief financial officer now owns 14,883 shares in the company, valued at $379,814.16. This trade represents a 16.58 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Kenneth Ian Weissman sold 6,309 shares of the business’s stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $25.51, for a total transaction of $160,942.59. Following the sale, the insider now directly owns 25,139 shares of the company’s stock, valued at approximately $641,295.89. This trade represents a 20.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 65,176 shares of company stock valued at $1,662,110 in the last 90 days. 24.08% of the stock is currently owned by insiders.

Institutional Investors Weigh In On IMAX

Hedge funds have recently bought and sold shares of the company. FMR LLC grew its stake in IMAX by 108.4% in the third quarter. FMR LLC now owns 3,949,643 shares of the company’s stock valued at $81,007,000 after acquiring an additional 2,054,031 shares during the period. Lord Abbett & CO. LLC acquired a new position in shares of IMAX in the third quarter valued at approximately $6,322,000. Castleark Management LLC bought a new stake in shares of IMAX during the third quarter worth $5,199,000. Pier Capital LLC bought a new position in IMAX during the 3rd quarter worth about $4,221,000. Finally, Victory Capital Management Inc. lifted its holdings in shares of IMAX by 9.8% in the third quarter. Victory Capital Management Inc. now owns 1,420,592 shares of the company’s stock valued at $29,136,000 after purchasing an additional 127,371 shares in the last quarter. 93.51% of the stock is currently owned by institutional investors and hedge funds.

About IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies.