Imax quarterly earnings missed Wall Street expectations on Wednesday, with box office disappointments such as “Transformers: The Last Knight” and “The Mummy” dragging down profits.
The exhibition company reported $1.7 million in losses for the three-month period ending in June, compared to profits of $6 million in the prior-year period. Revenues topped out at $87.8 million, a drop of 4.2% from the $91.7 million in revenues that the company reported in 2016. Losses on a per-share basis came in at 3 cents, whereas last year Imax touted profits of 9 cents a share. Analysts who follow the company had projected it would make $89.3 million in revenues and predicted earnings per share would come in at 14 cents.
Imax executives said they were making changes to the way they present Hollywood blockbusters. Imax Entertainment CEO Greg Foster told analysts on an earnings call that they would have fewer 3D showings of films, while Imax CEO Richard Gelfond said they would play films for shorter periods of time.
The company’s weak earnings report came after it had scored at the box office. “Dunkirk,” a critically adored World War II epic, racked up $12 million of its $50 million stateside opening from Imax locations. Director Christopher Nolan shot the film with the company’s cameras.
In the wake of its earnings, Imax also named JL Pomeroy as its chief marketing officer. Prior to joining the company, Pomeroy founded JumpLine Group, a brand activation agency, where she served as CEO. She also previously served as publisher with Modern Luxury Media, where she launched a magazine called Front Desk Los Angeles.
Imax shares fell 0.89% to $21.66 in after-hours trading.