Shares of Moving iMage Technologies, Inc. MITQ have gained 1% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares with the S&P 500 index’s 1% growth over the same time frame. Over the past month, the stock has declined 21.5% against the S&P 500’s 1.8% growth.
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MiT incurred a loss per share (EPS) of 5 cents for the second quarter of fiscal 2025, narrower than 7 cents a year ago.
The company posted revenues of $3.4 million, reflecting a 5.4% increase from $3.3 million in the prior-year quarter. The company attributed the revenue growth to an improving industry environment and the ongoing technology refresh cycle, which led to multiple orders for laser projectors and premium sound solutions.
Gross profit increased 23.3% year over year to $0.9 million, with gross margin expanding to 27.2% from 23.3% in the previous year. The company also reported a narrower net loss of $0.5 million compared to a net loss of $0.8 million in the prior-year period. Operating expenses declined to $1.5 million, reflecting cost-cutting measures initiated at the beginning of the fiscal year.
Moving iMage Technologies, Inc. Price, Consensus and EPS Surprise
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Key Business Metrics
MiT ended the quarter with a cash balance of $5.32 million, slightly higher than the $5.28 million recorded at the beginning of the fiscal year. The company’s cost reductions, including a previously announced $0.6 million in annualized savings, contributed to its improved financial performance. Management also noted that customer deposits declined from $1.7 million as of Jun. 30, 2024, to $1.1 million as of Dec. 31, 2024.
Management Commentary and Industry Trends
Chairman and CEO Phil Rafnson expressed optimism regarding the broader cinema industry’s recovery, particularly in light of a strong holiday box office performance. He noted that the industry is still in the early stages of a technology refresh cycle, with thousands of projectors and servers expected to be replaced over the next few years.
President and COO Francois Godfrey emphasized that the company is focused on increasing revenue consistency and reaching profitability in its core business. He noted that major cinema chains, including AMC, Regal and Cinemark, have begun investing in premium technology upgrades. While independent theaters, which form MiT’s core customer base, tend to follow later, the company aims to capture early demand through increased marketing efforts.
Factors Influencing Performance
The company’s revenue growth was supported by an improving demand environment and higher customer spending on premium projection and sound technologies. Two premium technology installations and an order for accessibility compliance products contributed to the revenue mix during the quarter.
Additionally, MiT benefited from margin expansion due to cost reductions and a favorable product mix. However, it continues to face challenges related to customer spending timing, as many independent theaters have yet to fully engage in the upgrade cycle.
Guidance
MiT expects continued year-over-year revenue growth, margin expansion and further reductions in net loss in the third quarter of fiscal 2025. Management highlighted that while the strong holiday box office and an improving industry environment are positive signs, spending among independent cinema operators remains in the early stages.
Godfrey noted that CinemaCon, the industry’s premier global event in April, will be an important indicator of theater operators’ spending plans for the remainder of the year. The company remains focused on positioning itself for long-term growth as the technology refresh cycle gains momentum.
Other Developments
MiT is continuing to develop its emerging initiatives, including its accessibility product MiTranslator and eCaddy, a fan engagement solution for stadiums and arenas. While these initiatives have yet to contribute significantly to revenue, the company is refining its go-to-market strategies and seeking initial partners.
Additionally, management mentioned that it will continue evaluating a potential shareholder repurchase program, though no formal decision has been made at this time.
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