I almost had a heart attack when I read the headline, but I'm just going through the #'s now to understand and everything is fine. For one thing adjusted EPS is actually .22 (ex options which we know was quite a bit this Q). That is usually what analysts are basing their estimates on.
The revenue numbers were great. The issue was on the expense side related to things like sales and services and R&D, but with all the recent signings that's all understandable. There is also a line called other which went up quite a bit. Trying to figure out what that includes.
Up nice pre market, so obviously people 'get it'.
They had a 284 theater backlog at the end of June, so including the two recent signings they are up to a range of around 364 - 444. Guess they'll have to start speeding up installs!
IMAX always likes to announce something along with earnings.
The IMAX/Wanda announcement is relatively weak. It is not a theater deal and all it is does is disclose some of IMAX and Wanda's long term plans. Much like planning to sell the company or planning their own digital projector or planning to retire - some of these plans work out and many do not. For business and investing I prefer deals.
They are annhouncing some lease extensions with both Wanda and AMC. These are relevant but only in the sense that they provide some degree of confidence in long term stability. The deals don't increase business or revenue at all so should really not affect the share price.
I'm not sure how it's weak. The first 40 theaters are guaranteed and set to install in 2014 and 2015. Is the option for 80 guaranteed, no - partially because IMAX is still working on their laser systems. And no it's not going to happen in 2014 or 2015, but they wouldn't have written up a contract (yes this is all written in a contract, not a handshake) for all of this for no reason. I'm not sure how lease extensions don't mean much. Do they increase near term revenue? Not much (they do spread out amortization costs on equipment), but they guarantee future revenue and anyone who is looking long term will be very happy to see that. What if they signed a 100 year deal, would that have no effect on stock price under your thesis?
Seeking Alpha just sent out a summary which probably is better than planned theaters as actual.
"The company says total year-to-date signings are between 140 and 225 depending upon the number of options exercised under the Wanda/AMC terms."
The 80 laser theaters are not committed. Obviously the first condition if they were to deploy is that the system be available, but even after this the deployment is a "plan" or an option not a deal (yet).
We did have some actual new theater deals announced but not as much as the simple "120 theater deal" line might indicate.