No disrespect to AMC Entertainment (NYSE:AMC) fans or “Apes,” but more cautious financial traders might prefer a less volatile and risk-fraught cinema stock. I invite you to conduct your due diligence on IMAX (NYSE:IMAX) stock and consider taking a small position.
Just to recap, IMAX isn’t nearly as big a company as AMC Entertainment is, but IMAX thrives in a niche market. In particular, IMAX specializes in visually enhanced films, sometimes including laser technology.
When meme-stock mania returned and AMC stock fluctuated wildly in mid-May, IMAX stock only wobbled slightly. It’s a sign that IMAX shares are the better bet for prudent long-term investors. But before you make any decisions, let’s do some investigating and see what IMAX has been up to lately.
IMAX Is Here, There and Everywhere
IMAX is fairly well known to high-tech movie aficionados in the U.S. You might not be aware, however, that the company is leveraging strategic partnerships to broaden its international presence.
Here’s a three-pack of news releases demonstrating Imax’s multinational build-out:
- IMAX is working with CineNOVA to install four new IMAX with Laser cinema systems in Turkey.
- In a partnership with SM Cinema, IMAX will establish 10 new IMAX with Laser systems in the Philippines.
- Additionally, IMAX is teaming up with MEGARAMA to add three new IMAX with Laser systems in France.
France is a crucial market for IMAX. According to the company, 2023 was the “highest grossing year ever for IMAX in the country, delivering over $23 million in box office.”
Plus, the company delivered its second-best first-quarter box-office performance “ever in France” this year. All in all, IMAX appears to be in steady growth mode in France and elsewhere in 2024.
Imax’s Impressive Bottom-Line Improvement
Meanwhile, financially, IMAX is on solid ground. There’s evidence for this in the company’s first-quarter 2024 results.
I will not claim that Imax’s results were perfect in every way. Unfortunately, the company’s Q1-2024 revenue declined 9% year over year to $79.1 million.
On the other hand, Imax’s net income grew 33% YOY to $3.3 million. Also, the company’s total adjusted EBITDA margin improved by more than 300 basis points YOY to 40.5%.
Besides, quarterly revenue isn’t the only gauge of Imax’s top-line results. Impressively, the company’s first-quarter 2024 global box office gross intake of $261 million marked Imax’s “third highest grossing Q1 ever.”
IMAX Stock: Skip the Memes and Focus on Growth
I won’t try to dissuade you from buying AMC stock today, if that’s what you really want to do. However, just be aware that there’s a less meme-driven alternative in the movie-theater market.
That alternative is IMAX, a financially solid business with a growing international presence. Therefore, if you’re looking for a “steady Eddie” type of cinema stock, add a few shares of IMAX stock to your portfolio.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
