The stock of Canadian movie theater chain Cineplex (TSE:CGX) is getting a lift as people return to the cinema after the Covid-19 pandemic.
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The Toronto-based company has reported strong financial results for the fourth quarter of 2024, announcing earnings per share (EPS) of C$0.05 ($0.035 U.S.), which compares to a loss of -$0.14 a year earlier. Revenue in the period totaled $362.7 million, up from $315.1 million in the final months of 2023.
Cineplex said that its overall sales in Q4 2024 increased 15% year-over-year, while box office revenue per movie theater patron amounted to $13.26, up from $12.90 in the same quarter of 2023. At the same time, sales from concession stands increased to $9.41, up from $9.28 a year ago.
Strong Slate of Films
Cineplex said people are steadily returning to movie houses, attracted by an increasingly strong slate of films. In the final quarter of last year, the box office got a lift from several blockbuster movies that included “Gladiator II” and “Wicked.”
The latest financial results from Cineplex are an improvement for the company after several difficult years prompted by the Covid-19 pandemic that saw many of its movie theaters shuttered or forced to operate at reduced capacity.
CGX stock has been climbing higher alongside its ticket receipts. In the last 12 months, the stock of Cineplex has risen 34%.
Is CGX Stock a Buy?
The stock of Cineplex has a consensus Strong Buy rating among three Wall Street analysts. That rating is based on three Buy recommendations issued in the last three months. There are no Hold or Sell ratings on the stock currently. The average CGX price target of $13.52 implies 28.49% upside from current levels.
