Don't Overlook Imax (IMAX) International Revenue Trends While Assessing the Stock

Have you assessed how the international operations of Imax (IMAX) performed in the quarter ended September 2025? For this entertainment technology company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.In our recent assessment of IMAX's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.The recent quarter saw the company's total revenue reaching $106.65 million, marking an improvement of 16.6% from the prior-year quarter. Next, we'll examine the breakdown of IMAX's revenue from abroad to comprehend the significance of its international presence.Decoding IMAX's International Revenue TrendsLatin America accounted for 2.8% of the company's total revenue during the quarter, translating to $3.03 million. Revenues from this region represented a surprise of +22.34%, with Wall Street analysts collectively expecting $2.48 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $2.15 million (2.4%) and $2.95 million (3.2%) to the total revenue, respectively.During the quarter, Asia excluding Greater China contributed $23.24 million in revenue, making up 21.8% of the total revenue. When compared to the consensus estimate of $15.15 million, this meant a surprise of +53.37%. Looking back, Asia excluding Greater China contributed $9.31 million, or 10.2%, in the previous quarter, and $16.93 million, or 18.5%, in the same quarter of the previous year.Of the total revenue, $14.05 million came from Western Europe during the last fiscal quarter, accounting for 13.2%. This represented a surprise of +41.06% as analysts had expected the region to contribute $9.96 million to the total revenue. In comparison, the region contributed $14.11 million, or 15.4%, and $3.74 million, or 4.1%, to total revenue in the previous and year-ago quarters, respectively.Rest of the World generated $3.52 million in revenues for the company in the last quarter, constituting 3.3% of the total. This represented a surprise of -24.53% compared to the $4.66 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of the World accounted for $3.55 million (3.9%), and in the year-ago quarter, it contributed $6.45 million (7.1%) to the total revenue.Greater China generated $20.27 million in revenues for the company in the last quarter, constituting 19% of the total. This represented a surprise of -19.91% compared to the $25.31 million projected by Wall Street analysts. Comparatively, in the previous quarter, Greater China accounted for $17.68 million (19.3%), and in the year-ago quarter, it contributed $21.32 million (23.3%) to the total revenue.During the quarter, Canada contributed $3.04 million in revenue, making up 2.9% of the total revenue. When compared to the consensus estimate of $2.02 million, this meant a surprise of +50.55%. Looking back, Canada contributed $2.49 million, or 2.7%, in the previous quarter, and $1.69 million, or 1.8%, in the same quarter of the previous year.Projected Revenues in Foreign MarketsWall Street analysts expect Imax to report a total revenue of $121.51 million in the current fiscal quarter, which suggests an increase of 31.1% from the prior-year quarter. Revenue shares from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada are predicted to be 2.5%, 15.4%, 12.2%, 4.4%, 27.7%, and 2.2%, corresponding to amounts of $3 million, $18.69 million, $14.79 million, $5.34 million, $33.6 million, and $2.69 million, respectively.For the full year, a total revenue of $403.93 million is expected for the company, reflecting an increase of 14.7% from the year before. The revenues from Latin America, Asia excluding Greater China, Western Europe, Rest of the World, Greater China and Canada are expected to make up 2.4%, 13%, 11.5%, 4.3%, 28.9%, and 2.1% of this total, corresponding to $9.58 million, $52.44 million, $46.42 million, $17.31 million, $116.71 million, and $8.61 million, respectively.The Bottom LineRelying on global markets for revenues presents both prospects and challenges for Imax. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.At the moment, Imax has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .Reviewing Imax's Recent Stock Price TrendsOver the preceding four weeks, the stock's value has diminished by 2.8%, against an upturn of 2.5% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Imax among its entities, has depreciated by 2%. Over the past three months, the company's shares have seen an increase of 25.8% versus the S&P 500's 7.1% increase. The sector overall has witnessed a decline of 1.4% over the same period.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IMAX Corporation (IMAX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks