Here's Why Imax Stock Recovered From Today's Early Drop
Shares of high-end movie theater chain Imax (NYSE: IMAX) dropped on Friday morning after the company announced financial results for the second quarter of 2022. Imax stock was down as much as 13% earlier in the day. However, it climbed back and was only down 4% by the time the market closed. Here's what happened.
In Q2, Imax generated revenue of $74 million, up a whopping 45% year over year. This is because the global box office continues to climb its way back from the pandemic shutdown. However, it's important to note that Imax's market share in the U.S. is currently at 5.1% compared to a market share of 4.4%, which is a good sign.
Imax's gross margin expanded in Q2 to 59.5% compared to 50.2% in the same quarter last year, thanks to more robust sales. However, the company's net profit fell short of expectations. It had a net loss of $2.9 million. However, that was a marked improvement from last year's $9.2 million second-quarter loss.
Source Fool.com
