IMAX Corp. is experiencing a surge in box office success and global expansion, with third-quarter earnings exceeding expectations. Wedbush analysts raise target price to $39 due to higher output and global presence. Third-quarter box office receipts are at $324 million, beating Wedbush’s estimate of $299 million.

Third-quarter revenue is expected to be $100-102 million, surpassing consensus of $99 million. Adjusted EBITDA likely to exceed $40 million, with forecasted earnings per share at 31-34 cents. IMAX’s EBITDA margins are up to 42.6%, with full-year outlook in the low-40s.

IMAX is adding new screens, raising 2025 guidance to 150-160. Installations are concentrated in high-performing markets like Japan and South Korea. IMAX estimates a global penetration of only 36%, leaving room for expansion.

More than 14 blockbuster films filmed with IMAX cameras set to release in 2025. Local-language productions, especially in China, driving box office success. IMAX’s rising profitability and expanding global footprint are key factors in its growth.

In the second quarter, IMAX posted earnings of 26 cents per share, surpassing estimates by 24%. Revenue slightly below estimate at $91.7 million. IMAX shares trading higher at $32.74, up 2.44% on Monday.

Read more at Yahoo Finance: Local-Language Hits Are Driving IMAX Profits: Analysts