Analyst: JV Theater Installations May Benefit IMAX Financial Results
The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
Lowering our Q3 estimates to reflect weaker-than-expected box office for high-profile worldwide releases. Although IMAX (NYSE:IMAX) no longer provides mid-quarter or end-of-quarter box office updates, it appears that Elysium, Pacific Rim, and Riddick likely did not perform at the levels we initially expected. For Q3 we now expect revenue of $58 million and EPS of $0.07, vs. our prior estimates of $64million and $0.15, and consensus of $55 million and $0.08. We have left our Q4 estimates unchanged, however, as Gravity, which should benefit from outstanding reviews, can likely offset the impact of lower revenue spillover from Q3 releases. For FY:13 we now expect revenue of $280 million and EPS of $0.67, vs. consensus of $285 million and $0.73. It does not provide quarterly or FY guidance.
Our Q4 box office expectations may be overly conservative. The release slate in the first half of the quarter appears to be somewhat light apart from Gravity, but we continue to expect The Hunger Games: Catching Fire and The Hobbit: The Desolation of Smaug to be among the year’s top performers. We will re-evaluate our Q4 expectations after we know the Q3 box office figure and have had a chance to see how the two aforementioned sequels perform.