Entertainment technology firm IMAX Corp. (NYSE:IMAX) rallied for a second day on Thursday, nearly hitting its 52-week high, after reporting a solid earnings performance in the second quarter of the year which exceeded earnings expectations.
The stock climbed 11.86 percent higher during the day to close at $43.96 apiece. It hit an intra-day high of $45.12, or just 40-cents shy of its 52-week high of $45.52.
The rally was primarily driven by a 30.3 percent improvement in its net income at $15.9 million versus $12.2 million in the same period last year, as total revenues increased by 12 percent to $102.8 million from $91.7 million year-on-year.
The strong performance signaled the continued strong demand for cinema releases amid threats of the growing digital entertainment era.
Photo by Tima Miroshnichenko on Pexels
The Odyssey Sparks H2 Growth Hopes
IMAX Corp. (NYSE:IMAX) posted a highly optimistic outlook for the second half of the year amid the strong debut of The Odyssey in its cinemas, “which achieved the biggest IMAX opening weekend of all time in like-for-like markets.”
It said The Odyssey delivered the highest IMAX international market share in like-for-like markets of any major release in its history.
“The Odyssey—the first-ever full-length theatrical release filmed entirely with IMAX film cameras—is emerging as a transformational event for IMAX, as the purest and most complete expression yet of the power of our global platform,” said IMAX Corp. (NYSE:IMAX) CEO Rich Gelfond.
“The Odyssey has the potential to impact our business in many ways that are clear—and many ways we can’t yet predict, as its success on our platform reverberates across the creative community, and throughout the entertainment landscape,” he added.
Hedge Fund Participation Drops
Institutional participation in the company softened in the first quarter, reflecting a more cautious stance toward the firm and the broader industry.
According to data from Insider Monkey, 27 hedge funds held positions in the company during the period, a decline from 32 in the previous quarter.
Collectively, their holdings markedly dropped by 5.76 percent to $454.78 million from $482.6 million quarter-on-quarter, signaling a weaker institutional conviction.
Of its hedge fund holders, Orbis Investment Management currently owns the largest chunk at $195.8 million, followed by Driehaus Capital at $62.78 million. Royce & Associates came third at $47.36 million.
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