IMAX's (IMAX) Q2 results reinforced its long-term growth outlook as higher theater installations and operating-expense leverage helped the company exceed expectations, Wedbush Securities said Friday in a report.
Revenue rose 12% to $103 million, above the $94 million consensus estimate, while adjusted earnings before interest, taxes, depreciation, and amortization, excluding noncontrolling interests, reached $45 million, topping Wedbush's $39 million forecast, the report said.
Weaker box-office results in China and a "modest" domestic market-share decline were temporary, and growth should be supported by more filmed-for-IMAX titles, rising local-language content, alternative programming beyond Hollywood releases and continued global expansion, Wedbush said.
IMAX maintained its 2026 targets of $1.4 billion in global box-office revenue, 160 to 175 installations and an adjusted EBITDA margin of at least 45%, and the margin targets through 2028 may prove "conservative," the report said.
Wedbush raised its price target on IMAX stock to $54 from $46 and reiterated its outperform rating.
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