NEW YORK (TheStreet) -- IMAX Corp. (IMAX) - Get Report stock is plunging 12.10% to $28.26 on heavy trading volume Thursday afternoon after the movie production and distribution company reported lower than expected earnings for the 2015 fourth quarter. Revenue surpassed estimates.
After yesterday's market close, the Canadian company posted earnings of 39 cents per share for the quarter ended December 31, while analysts surveyed by Thomson Reuters expected expecting earnings of 43 cents per share.
Revenue increased 16.5% year-over-year to $119.33 million for the quarter, beating estimates of $115.83 million.
Revenue growth was driven by movies such as Star Wars: The Force Awakens, The Hunger Games: Mockingjay - Part 2, The Martian and Spectre.
"IMAX is clearly benefiting from a global trend in the film industry to make more big-budget blockbuster movies," CEO Richard Gelfond said in a statement.
So far today, 3.01 million shares of IMAX have exchanged hands, more than three times its average daily volume of 806,536 shares.
Separately, IMAX has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, impressive record of earnings per share growth and notable return on equity.
You can view the full analysis from the report here: IMAX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.