Imax Corp. reported third-quarter results ahead of Wall Street expectations, but investors did not immediately seem impressed, sending the companys already slumping shares down 1% in early trading.
Over the past month, the stock has sagged 23%, leaving it down almost 10% in 2018 to date. Today, it has shed another 1%, dipping below $21 on light volume.
Adjusted earnings of 14 cents a share beat the analyst consensus of 10 cents. Revenue of $82.1 million also exceeded estimates, but dropped 17% from the year-earlier quarter.
China was a bright spot, with box office in the territory zooming 30.5%. But the companys network business saw revenue dip to $36.7 million from $42.6 million a year ago, while theatrical revenue declined to $40.7 million from $43.5 million.
In the earnings release, CEO Rich Gelfond acknowledged the challenge of operating in todays consumer environment, in which theatrical moviegoing is constantly facing new competition for consumers leisure time. The companys large-format technology offers a chance to lean into those challenges, he said.
“The convergence of streaming and traditional media platforms creates interesting opportunities for Imax,” Gelfond said. “Our 1,400-plus theatre network across nearly 80 countries affords filmmakers the opportunity to launch their content in a highly-differentiated, premium format. We are in active discussions across these converging platforms and believe Imax has a unique opportunity to influence the emerging trends in our industry and be a direct beneficiary of the evolving landscape.”
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