Have you evaluated the performance of
Imax's
(IMAX) international operations for the quarter ending March 2025? Given the extensive global presence of this entertainment technology company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing IMAX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
For the quarter, the company's total revenue amounted to $86.67 million, experiencing an increase of 9.5% year over year. Next, we'll explore the breakdown of IMAX's international revenue to understand the importance of its overseas business operations.
Latin America generated $1.96 million in revenues for the company in the last quarter, constituting 2.26% of the total. This represented a surprise of -4.54% compared to the $2.05 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $2.32 million (2.51%), and in the year-ago quarter, it contributed $1.46 million (1.85%) to the total revenue.
Asia excluding Greater China accounted for 10.72% of the company's total revenue during the quarter, translating to $9.29 million. Revenues from this region represented a surprise of -29.08%, with Wall Street analysts collectively expecting $13.1 million. When compared to the preceding quarter and the same quarter in the previous year, Asia excluding Greater China contributed $22.05 million (23.79%) and $9.13 million (11.53%) to the total revenue, respectively.
Of the total revenue, $7.55 million came from Western Europe during the last fiscal quarter, accounting for 8.71%. This represented a surprise of -20.99% as analysts had expected the region to contribute $9.56 million to the total revenue. In comparison, the region contributed $12.37 million, or 13.35%, and $14.19 million, or 17.94%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Rest of the World contributed $3.77 million in revenue, making up 4.35% of the total revenue. When compared to the consensus estimate of $3.82 million, this meant a surprise of -1.36%. Looking back, Rest of the World contributed $3.87 million, or 4.18%, in the previous quarter, and $3.88 million, or 4.91%, in the same quarter of the previous year.
Of the total revenue, $40.13 million came from Greater China during the last fiscal quarter, accounting for 46.30%. This represented a surprise of +113.54% as analysts had expected the region to contribute $18.79 million to the total revenue. In comparison, the region contributed $15.47 million, or 16.69%, and $21.45 million, or 27.11%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Canada contributed $1.4 million in revenue, making up 1.62% of the total revenue. When compared to the consensus estimate of $2.17 million, this meant a surprise of -35.39%. Looking back, Canada contributed $2.09 million, or 2.26%, in the previous quarter, and $2.41 million, or 3.04%, in the same quarter of the previous year.
Wall Street analysts expect Imax to report a total revenue of $92.7 million in the current fiscal quarter, which suggests an increase of 4.2% from the prior-year quarter. Revenue shares from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada are predicted to be 2.7%, 17%, 10.1%, 4.6%, 21.8% and 2.6%, corresponding to amounts of $2.46 million, $15.8 million, $9.37 million, $4.25 million, $20.25 million and $2.36 million, respectively.
For the full year, a total revenue of $404.74 million is expected for the company, reflecting an increase of 14.9% from the year before. The revenues from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada are expected to make up 2.6%, 18%, 10.8%, 4.8%, 21.6% and 2.5% of this total, corresponding to $10.67 million, $72.66 million, $43.54 million, $19.32 million, $87.56 million and $10.07 million respectively.
The dependency of Imax on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Imax, bearing a Zacks Rank #4 (Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
The stock has increased by 19.8% over the past month compared to the 9.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Discretionary sector, which includes Imax, has increased 16.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 3.9% relative to the S&P 500's 3.1% decline. Throughout this period, the sector overall has witnessed a 1.9% decrease.
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This article originally published on Zacks Investment Research (zacks.com).
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