Analyst Note| Neil Macker, CFA |
Imax beat lowered third-quarter FactSet consensus expectations for both revenue and EBITDA despite theaters around the world remaining either shuttered or capacity constrained due to COVID-19. While Imax missed on its previous expectation that 90% of its theaters will reopen by the end of August, 65% of the theater network (1,000 screens) are open right now. Despite the reopened screens, Imax’s box office as well as the industry’s, continues to hinge on the timing of the release slate from the major U.S. and China studios, capacity constraints, and the willingness of consumers to return. We are maintaining our $20 fair value estimate and shares will remain undervalued, in our view.