IMAX (IMAX) Stock Up After Deal With China
Shares of IMAX Corporation (IMAX: Charts, News) closed up +2.46 or +11 percent to $24.53 per share on Tuesday, after the company reported that it had agreed to install four new digital IMAX theater systems in China. The Mississauga, Ontario-based company makes and operates giant movie projection systems, and also announced on Tuesday that their box office revenue had increased 45 percent in 2012 through February 12th, from the same period one year ago.
IMAX announced two agreements with Broadway Theatre Company Ltd to install the four IMAX systems in new multiplexes.
After Tuesday's agreement, the number of IMAX theaters operating or set to open in Greater China will be 217. According to Broadway Executive Director Tessa Lau, "We look forward to offering the world's most immersive movie experience to more of our customers with these four new locations."
The IMAX theater Broadway currently runs in Hanzhou has generated about $2.4 million in box office sales since the theater opened in August of 2010. Jiande Chen, CEO of IMAX China stated that, "We are pleased to build on our partnership with Broadway as we continue to expand our network in China."
As of September 30th of 2011, there were 583 IMAX theaters operating in 48 countries. IMAX's headquarters is in New York, Toronto and Los Angeles, with offices in Shanghai, Beijing, London and Tokyo. IMAX's network includes North America, Western Europe, Japan, Russia and China.
IMAX also announced on Tuesday that worldwide receipts for IMAX cinemas had come to $55 million for 2012 through February 12th. Half of that amount has come from the Tom Cruise movie "Mission Impossible Ghost Protocol", which has grossed over $70 million at IMAX theaters since its December release.
Earnings for IMAX's third quarter of 2011 came in under analyst expectations, with the company earning $8.39 million or 16 cents per share, compared to analyst estimates of 20 cents per share. Nevertheless, IMAX said that the company took a 6 cent per share hit from "a sudden decrease of the Canadian Dollar against the U.S. Dollar at the end of the third quarter."
Gross revenue from overseas theaters surpassed IMAX's domestic theaters for the first time in the third quarter. With the company increasing its international growth plans by 25 percent, those markets will be accounting for approximately 75 percent of new IMAX venues through 2012.
Earnings for IMAX's fourth quarter are expected to be released on February 23rd, with a conference call to discuss earnings results with analysts set to begin at 8:30 AM Eastern Time. According to Bloomberg analysts currently expect IMAX to earn between 6 and 18 cents per share with a median consensus of 13 cents.
Other News About IMAX
IMAX Corporation to Announce Fourth Quarter and Fiscal 2011 Financial Results
Details of earnings release and conference call set for February 23rd.
Tom Cruise Film Lifts Imax to Six-Month High
New Mission Impossible film fuels box office receipts. Other Stocks in the News
Yahoo-Alibaba Talks at an Impasse: Sources
Talks over Yahoo's Asian assets hit an impasse.
Apple, Suppliers Explore Smaller Tablet
Company explores an eight inch iPad screen with Asian suppliers.
Copyright 2011 by InvestorGuide.com, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA InvestorGuide.com, Inc.) or its employees responsible.