IMAX Worth the Voyage: Reiterate OW Following Q2 Beat + Odyssey Momentum

研报英文原文证据摘录

IMAX Worth the Voyage: Reiterate OW Following Q2 Beat + Odyssey Momentum

o date, we Prev Cur Δ

expect investors to debate whether the company can hit it the full-year BO target; Adj. EPS - 26E ($) 1.55 1.69 8.6%

while we acknowledge the softer China result in 1H leaves less room for error on

Quarterly Forecasts (FYE Dec)

announced Hollywood and local language content, we point out that IMAX has

Adj. EPS ($)

proven adept at adding to its slate through the year. 2025A 2026E 2027E

Q1 0.13 0.17A

More strategically, management was clear that The Odyssey should elevate the IMAX Q2 0.26 0.43

brand across stakeholders, comparing it to the original Avatar, and we expect Q3 0.47 0.50

attendant benefits in the near-term through higher indexing, and longer-term in greater Q4 0.58 0.58

FY 1.45 1.69 1.72

demand from exhibitors for the format. We update our model, largely flowing through

the Q2 EBITDA beat to the full year. We remain Overweight, and establish a Dec-27 Style Exposure

price target of $50.

Earnings call highlights included 70mm locations, pricing opportunities,

merchandise, and Infinity Vision. On 70mm film, IMAX disclosed a $153k per

screen average across 41 locations, and better take rates for these theaters given the

company’s role in subsidizing the prints. An expensive installation and maintenance

cost is a natural constraint to further expansion, though management highlighted that

at least four films (new and re-releases) would be presented in 70mm next year. On

pricing, IMAX noted the robust secondary market for The Odyssey at AMC Lincoln

Square, with the view there’s room for prices to move up. Exhibitors set the rates for

films, though we have seen some lean in to $50 tickets for Dune 3 later this year (link).