Analyst Positive On Regal, Imax, Carmike In 2Q

NEW YORK (AP) — An analyst gave upbeat second-quarter expectations for Regal Entertainment Group, Imax Corp. and Carmike Cinemas Inc. in a note to investors Thursday, predicting they will benefit from a slate of films including "Star Trek" and "Night at the Museum II."

Merriman Curhan Ford analyst Eric Wold reiterated his "Buy" ratings for Regal and Carmike shares, saying that the companies' domestic box office revenues rose 9 percent to 10 percent in the first quarter despite a lineup of movies that he considered "fairly lackluster."

This makes him optimistic about the second quarter, which is set to include both the Star Trek and Museum films as well as others like "Hannah Montana the Movie."

Wold added that a meeting with Regal management this week leads him to believe the company's concession spending trends are stable despite the recession.

He also thinks that Carmike is benefiting from its operation of 500 3-D movie screens, which accounts for about 21 percent of its total screens and 25 percent of the total 3-D screens in the U.S.