NEW YORK (TheStreet) -- Shares of IMAX (IMAX - Get Report) are falling by 2.67% to $32.06 on heavy trading volume on Thursday afternoon, erasing gains from an earlier rally even though the company delivered solid financial results for the 2016 first quarter.
Before today's market open, the entertainment technology company reported a profit of 22 cents per share for the first three months of the year, up from 7 cents per share for the same period last year. Analysts had estimated for earnings of 15 cents per share.
Revenue increased by 48% year over year to $92.13 million for the quarter, compared with $62.21 million for the 2015 first quarter. Revenue beat estimates of $83.94 million.
The results were driven by a strong slate of films in the quarter that included "Deadpool," "Batman v Superman" and "Zootopia."
"The first quarter usually doesn't have these kinds of movies," CEO Richard Gelfond told Los Angeles Times. "I think it's one of the cleanest and one of the best quarters we've had."
So far today, 2.02 million shares of IMAX have been traded, compared with its average daily volume of 825,841 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, growth in earnings per share, increase in net income and good cash flow from operations.
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 article's author.