AMC Entertainment (NYSE: AMC) just posted its best quarter in over a century. But the AMC report tells investors something else, too. It’s a preview of what’s coming for IMAX Corporation (NYSE: IMAX). AMC’s numbers reflect a domestic box office that grew nearly 11% year over year, its best second quarter in seven years. IMAX theaters sit at the premium end of that recovery. And the next leg of it, driven by Christopher Nolan’s “The Odyssey,” hasn’t even hit the company’s books yet.
That timing gap is the crux of the trade. AMC already looks fairly priced for its turnaround. IMAX hasn’t yet reported the catalyst that’s filling its seats. For investors weighing the two, that difference matters more than a chart pattern.
Why IMAX’s Biggest Growth Catalyst Is Still Ahead
IMAX reports earnings on July 23. That report will cover the second quarter, which ended in June. It won’t include a dollar of revenue from “The Odyssey,” which opened this past weekend to a reported $124 million domestic debut.
That’s the opportunity. The company’s iconic premium large-format screens are booked solid for weeks. Nolan has a proven track record of filling the company’s auditoriums, and this release appears no different. None of that shows up in Wednesday’s numbers.
What investors should watch instead is guidance. Management commentary on third-quarter bookings will matter more than the trailing quarter’s results. If the company signals strong forward demand tied to “The Odyssey,” and later to “Spider-Man: Brand New Day” and “Dune: Part Three,” the stock has room to re-rate higher.
Earnings growth is the key variable. IMAX carries a leaner balance sheet than AMC and doesn’t face the same debt overhang. If it can hit EPS and free cash flow targets while flagging a strong back half, the setup looks more attractive than AMC’s, where much of the good news is already public.
AMC’s Results Support the Bull Case for IMAX Stock
AMC’s results still matter for the IMAX thesis. Revenue climbed 14.2% to $1.6 billion. Adjusted EBITDA soared 70% to $321.4 million. U.S. attendance rose 12%, while international attendance jumped 18%. For a stock that spent years as a punchline after its 2021 meme-stock heyday, this earnings beat gives bulls a real fundamental story to point to.
As the largest theater chain in the world, AMC’s attendance and revenue trends are a real-time read on box office health. Both readings this quarter were strong.
Domestic attendance rose 12% year over year. International attendance rose nearly 18%, with European Adjusted EBITDA climbing over 300%. Those numbers confirm that moviegoers are back and spending more per visit on tickets and concessions.
That’s exactly the environment IMAX needs. But AMC’s stock carries extra baggage. Its stockholders’ deficit still runs past $1.4 billion, even after this quarter’s debt reduction. Diluted share count has ballooned. AMC works as a signal of industry direction. It’s a less clean way to bet on that signal than owning IMAX directly.
Technical Charts Tell Two Different Stories
AMC’s chart shows why. The stock has responded. AMC shares recently formed a golden cross, with the 50-day moving average crossing above the 200-day. That’s often read as a bullish signal. Shares sit near $2.40, above both the 50-day and 200-day moving averages, with the golden cross intact. Volume has spiked alongside the rally, a sign of speculative interest rejoining the stock.
IMAX’s chart looks different. Shares trade around $38.69, still well above their 200-day moving average near $36.89. But the stock has pulled back from a recent high above $45, and the MACD has rolled over into negative territory.
That pullback looks more like consolidation than deterioration. It sets up a cleaner entry ahead of earnings, especially if guidance confirms the “Odyssey” tailwind. AMC’s momentum, by contrast, may already reflect most of its good news.
Why IMAX Offers More Upside After AMC’s Earnings
AMC’s turnaround is real, and its numbers offer a legitimate read on box office strength. But the stock has already re-rated. By contrast, with its biggest catalyst still ahead of its earnings report, IMAX offers the more asymmetric setup for investors chasing this theatrical rebound.
