'Resident Evil' Opening Record Boosts Third-Quarter Domestic Box Office Outlook, B. Riley Says
"Resident Evil" delivered a franchise-record opening weekend that topped pre-release domestic expectations and boosted third-quarter revenue projections for the entire sector, B. Riley Securities said Monday.Zach Cregger's "Resident Evil" earned $60 million, higher than estimates that pointed to between $45 million and $55 million, B. Riley analyst Drew Crum said. The outperformance bodes well for the domestic box office, particularly IMAX (IMAX)."We're constructive on the near-term fundamental outlook for the group, as 'Resident Evil' provides another boost to the (third quarter domestic box office) where our estimate for September leans to the upside," Crum said.The brokerage expects $515 million in domestic box office collections this month.B. Riley said its market cap-weighted theater stocks index has surged over 60% year to date and outperformed the 15% gain for the Russell 2000, leaving limited room for further upside."We remain selective with our stock-picking with IMAX as our only buy-rated name," Crum added.B. Riley last week raised its price target on Angel Studios (ANGX) to $9 from $8 and reiterated a buy rating.IMAX's stock was up 2.6% in Monday trade, while Angel Studios' shares fell 2%. They are up 46% and 11% so far this year, respectively.Earlier this month, IMAX said it generated a record $728 million in global box office receipts from Memorial Day through Labor Day and expects record world-wide collections of $1.4 billion in 2026.Macquarie on Sept. 1 raised its third-quarter domestic box office estimate to $2.81 billion from $2.6 billion, pushing the 2026 outlook to $10.3 billion.Price: $54.10, Change: $+1.33, Percent Change: +2.52%
