If you’re feeling good about the market, you’re not alone. Take my hand as we go over some of this week’s more uplifting headlines.
1. IMAX Corporation (USA) (NYSE:IMAX) is a blockbuster
The local multiplex isn’t dead if there’s an IMAX screen.
Shares of the company behind enhanced big-screen experiences hit their highest levels since March of last year after posting better-than-expected quarterly results.
IMAX’s fourth-quarter revenue rose 17% to $77.8 million, fueled by a 56% spike in gross box office revenue for films screening at its theaters. Adjusted net income nearly doubled to $0.23 a share. Analysts were only banking on a profit of $0.16 a share on just $74 million in revenue.
IMAX continues to have a healthy backlog of orders for its revenue-enhancing projection systems, especially internationally. This is a scalable model given the fixed digital remastering costs, so margins should continue to expand as its reach grows.
More movie studios are also filming IMAX-exclusive sequences with IMAX cameras, giving filmgoers yet another reason to seek out IMAX screenings in the future. Exhibitors in general have had a rough couple of years, but IMAX has been a shining beacon in a sluggish industry.
2. Two more Best Buy Co., Inc. (NYSE:BBY) believers
Best Buy rarely makes its way into this weekly column these days, so we may as well enjoy the moments when the struggling consumer electronics chain gets it right.
It’s been a long time since an analyst had something positive to say about Best Buy, but this week we had two Wall Street pros profess their newfound faith in the retailer.
Analysts at Barclays Capital and Stifel Nicolaus upgraded their views on Best Buy as an investment this week. Despite the challenges, they feel that an improving economy, a coming boom in Web-tethered smart appliances, and the growing popularity of Android over iOS will help serve the chain well.
Whether or not Best Buy’s disgruntled founder succeeds in taking back control of the company, there is something to be said about the old adage that a rising tide lifts all boats — even if Best Buy has all the makings of the Titanic in the long run.
3. Sodastream International Ltd (NASDAQ:SODA) is a pop star
SodaStream served up carbonated quarterly results this week.
Revenue soared 55% during the holiday quarter to $132.9 million, as adjusted profitability checked in at $0.45 a share. Wall Street was settling for earnings of $0.39 a share on $121.5 million.
SodaStream sold a record 1.1 million soda makers during the quarter, paving the way for strong sales of carbonators and soda flavors in the future.