IMAX stock crests buy point on pre-Odyssey earnings surge

IMAX stock projected an early entry buy signal on Thursday morning as a Q2 earnings beat added to momentum from its best-ever opening weekend.

Christopher Nolan's "The Odyssey," the first-ever theatrical release shot in IMAX'sIMAX largest and highest-resolution film format, delivered a record-breaking $52 million first-weekend haul for the immersive IMAX theaters alone. The blockbuster opening helped send AMC EntertainmentAMC past an early buy point on Monday but the liftoff for IMAX shares was postponed until after earnings.

The success of Nolan's film "is emerging as a transformational event for IMAX, as the purest and most complete expression yet of the power of our global platform," CEO Rich Gelfond said in the earnings statement. He said that momentum should continue through the second half of the year, culminating with the release of "Dune: Part Three," which also was shot with IMAX film cameras.

IMAX Earnings

IMAX reported Q2 earnings per share of 43 cents, up 65% from a year ago and way ahead of 28-cent estimates. Revenue jumped 12% to $102.8 million, topping the FactSet consensus of $94.7 million.

Going into earnings, analysts had expected full-year EPS growing 15% to $1.67 on 7% revenue growth to $439 million, with the fourth quarter expected to be the year's strongest.

The immersive theater chain said its 38 IMAX installations in the quarter were the highest in a decade. The company didn't update its full-year outlook for 160-175 installations and around $1.4 billion in box office receipts.

Nolan's IMAX Blockbuster

IMAX has 41 state-of-the-art IMAX 70 mm film locations, which delivered $6.3 million in weekend box office for "The Odyssey." The film will continue to show in those locations for at least five weeks.

Overall IMAX theater revenue collected from 885 screens in the U.S. and abroad accounted for 23.8% of domestic sales and 16% of international sales. Nolan and cinematographer Hoyte van Hoytema collaborated with IMAX to develop its next-generation film camera and accompanying sound blimp.

On Thursday, IMAX reported that as of July 21, the film's second weekend sold out at 85% of IMAX locations, with 72% sold out for the third.

IMAX Stock

IMAX shares jumped 5.5% to 41.45 early Thursday. Shares are on track to open near Monday's intraday high of 41.05. A move past Monday's high would provide an early entry buy signal for aggressive investors based on the break above IMAX's trend line sloping down from its June 24 high of 45.52.

Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

YOU MAY ALSO LIKE:

These Are The Best 5 Stocks To Buy Now Or Get Ready To

Why This IBD Tool Simplifies The Search For Top Stocks

How To Invest: Rules For When To Buy And Sell Stocks In Bull And Bear Markets

Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screen