What Happened?
Shares of premium cinema technology company IMAX (NYSE: IMAX) jumped 15.3% in the afternoon session after it reported fourth-quarter 2025 results that surpassed Wall Street's expectations for both revenue and profit.
For the quarter, revenue grew 35.1% year-on-year to $125.2 million, beating consensus estimates. Profitability showed significant improvement, with adjusted earnings per share of $0.58, more than doubling from $0.27 in the same period last year and coming in 22.9% above analyst forecasts. The company's operating margin expanded to 19.3% from 10.3% a year earlier, highlighting increased efficiency. This strong bottom-line performance, driven by higher sales and better margins, appeared to fuel investor optimism about the company's trajectory.
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What Is The Market Telling Us
IMAX’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for IMAX and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.3% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
IMAX is up 16.4% since the beginning of the year, and at $41.94 per share, has set a new 52-week high. Investors who bought $1,000 worth of IMAX’s shares 5 years ago would now be looking at an investment worth $2,029.
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