Thursday's Early Winners & Losers
Shares of Imax (IMAX) plummeted in late trading Wednesday after the Canadian big-screen purveyor posted a rise in second-quarter earnings, but said it was responding to an informal inquiry from the Securities and Exchange Commission regarding the timing of revenue recognition.
The company also said it couldn't find a buyer and that it identified a material weakness in the internal controls.
For the second quarter, Imax reported earnings of $3.5 million, or 8 cents a share, compared with $1.1 million, or 3 cents a share, a year ago. Revenue increased 34% over a year ago to $41.4 million. Analysts polled by Thomson First Call were looking for income of 7 cents a share and $39.9 million in revenue.
The company, which had put itself up for sale, also indicated that it hasn't been able to find an offer at a price it finds acceptable. "Today the Company reported that while it received significant initial interest from multiple parties, its view is that there are presently no buyers who have indicated a willingness to acquire the Company at a valuation sought by the Board of Directors," Imax said. "Because interest remains from several parties at a lower valuation, however, the Board has authorized the Company's bankers to explore these opportunities. This process is ongoing." Shares sank $3.54, or 37%, to $6.09 after hours.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV