IMAX Q3 Earnings Smashes Estimates On Box Office Strength

IMAX Corp IMAX reported third-quarter FY23 sales growth of 51% year-on-year to $103.90 million, beating the analyst consensus estimate of $100.72 million.

The company said Q3 marks its second highest grossing quarter of all time at the IMAX global box office.

Gross profit jumped 98% to $62.7 million, and the margin of 60% expanded 1,400 basis points Y/Y. 

Adjusted EBITDA totaled $45 million, with an adjusted EBITDA margin expanding from 26% to 47%.

Operating cash flow for nine months totaled $54.6 million compared to $0.5 million last year. IMAX held $109.6 million in cash and equivalents as of September 30, 2023.

Adjusted EPS of $0.35 beat the consensus estimate of $0.23.

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"We are programming by far the strongest and most diverse content portfolio in our history — Hollywood blockbusters, local language films, marquee theatrical releases by streamers, concert films, docs, Live events, and we couldn't be more pleased with the results across our global network," said CEO Richard L. Gelfond.

"Our outsized performance with Hollywood blockbusters coupled with the expansion of our successful local language strategy is fueling strong network growth around the world, with robust sales activity in China and North America as well as key growth markets across Europe and Southeast Asia."

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Price Action: IMAX shares are trading higher by 0.49% at $18.38 on the last check Wednesday.