Imax And Time Warner 20 Picture Deal Creates Buying Opportunity Ahead Of 2013

| About: IMAX Corporation (IMAX)

A huge twenty picture deal between Imax (NYSE:IMAX) and Warner Brothers (NYSE:TWX) has created a strong lineup for 2013 for the oversized movie theater company. The deal, announced last week, furthers an existing partnership between the two firms and brings several blockbusters to IMAX.

Here is a look at the sixteen announced movies that start the deal:

· Jack the Giant Slayer 3D - March 1, 2013

· Man of Steel 3D - June 14, 2013

· Pacific Rim 3D - July 12, 2013

· 300: Rise of an Empire - August 2, 2013

· Gravity 3D - TBA

· Seventh Son 3D -October 18, 2013

· The Hobbit: The Desolation of Smaug 3D - December 13, 2013

· All You Need is Kill 3D - March 7, 2014

· Transcendence - TBA

· Godzilla - May 16, 2014

· Jupiter Ascending 3D - TBA

· The Hobbit: There and Back Again 3D - July 18, 2014

· Black Sky - TBA

· Tarzan 3D - TBA

· Fury Road 3D -TBA

· Journey 3 3D - TBA

As you can see, many of the movies added by Warner Brothers will be shown in 3D. This form of movie remains popular and makes the movie experience worth the extra money forked over to the movie theater by customers.

Going into 2013, Imax now has 15 movies signed for release. In 2012, the company saw a total of 32 movies shown in Imax, counting limited releases and territorial limited releases. Along with the Warner Brothers movies, here are other movies that will be shown on Imax screens in 2013:

· Hansel and Gretel: Witch Hunters - January 25

· Oz: The Great and Powerful - March 8

· Jurassic Park - April 5

· Oblivion - April 15

· Iron Man 3 - May 3

· Star Trek: Into Darkness - May 17

· Ender's Game - November 1

· The Hunger Games: Catching Fire - November 22

Looking at the long list of movies, I already see huge blockbusters in "Man of Steel", "The Hobbit", "300", "Oz", "Iron Man 3", "Star Trek", and "Catching Fire". Many of the other movies have a chance to surprise or fill in nicely in between releases. Imax will also announce more movies that will be shown on their large screens to fill holes in the 2013 calendar.

Shares of Imax trade at $21.46, close to the midpoint of their fifty two week range of $17.42 to $26.68. For the current quarter, analysts on Yahoo Finance expect the company to post earnings per share of $0.16 from $73.28 million. That quarter will feature revenue from "Skyfall", "Breaking Dawn Part 2" and "Rise of the Guardians", movies that I think will perform well on the large screens. The company has met or beat analysts' targets for earnings per share the past three quarters. On the year, the company is expected to post earnings per share of $0.74.

Imax continues to increase the number of movies released on its screens each year. That fact, along with a growing international presence, bode well for the company going forward. Imax is diversifying into movies being shot with IMAX cameras, joint revenue sharing plans, and a whole new theater concept that will be announced soon. All of these create a buying opportunity in shares of Imax that are down from yearly highs.

Disclosure: I am long IMAX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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