Motley Fool
0
All posts from Motley Fool
Motley Fool in Motley Fool,

Why IMAX Corporation Jumped 16% Today

Image source: IMAX.

What: Shares of IMAX (NYSE: IMAX) rose as much as 15.7% on Thursday, following a strong earnings report.

So what: In the second quarter, IMAX's sales declined 14% year over year, to $91.7 million. The immersive cinema specialist signed deals for 94 new screens during the quarter, up from 28 in the year-ago period. The company also followed through on performing 38 new installations, up from 35 a year ago.

On the bottom line, adjusted earnings landed at $0.18 per diluted share, down from $0.40 per share in the corresponding 2015 period.

Based on these results and signed theater deals, IMAX raised its full-year guidance for theater installations to 155 theaters. That's up from about 137 installations in last-quarter's guidance update, which itself was a boost from the original forecast of roughly 117 new theaters.

Now what: Sales and earnings may have shrunk this time, but the damage was smaller than expected. IMAX beat analyst estimates on both the top and bottom lines. Moreover, robust theater deals are laying the groundwork for better numbers in future quarters.

The stock has been riding a bumpy road in 2016. Even after today's sudden surge, IMAX shares are still trading down 4% this year.

A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.

Anders Bylund has no position in any stocks mentioned. The Motley Fool owns shares of and recommends IMAX. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.