Movie show operator AMC Leisure Holdings AMC will report first-quarter monetary outcomes after the market closes on Wednesday, Might 8.
Listed below are the important thing earnings estimates, what analysts are saying and key objects for traders to observe.
Earnings Estimates: Analysts anticipate AMC to report first-quarter income of $871 million, in response to information from Benzinga Professional.
The corporate reported income of $954.4 million in final yr’s first quarter. AMC has overwhelmed income estimates from analysts in 11 straight quarters.
The estimate of $871 million would mark the bottom quarterly income by AMC for the reason that first quarter of 2022.
Analysts anticipate AMC to report a lack of 79 cents per share within the first quarter, in comparison with a lack of $1.30 per share in final yr’s first quarter.
The corporate pre-announced first-quarter income of $951.4 million not too long ago. The corporate stated it expects to report a lack of 62 cents per share for the primary quarter.
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What Analysts Are Saying: Market share positive aspects and progress potential in Europe are overshadowed by excessive debt ranges and a scarcity of dividend, Wedbush analyst Alicia Reese not too long ago stated.
The analyst, who has a Impartial ranking and $4 value goal, stated rising bills additionally issue into the corporate’s storyline.
“AMC expanded its market share in 2023 and might increase farther from its 22.5% market share with its huge community of premium large-format screens and live performance film distribution,” Reese stated.
Theater upgrades in Europe might improve per-screen common, the analyst stated. The analyst stated this will not occur till the stability sheet improves.
“The corporate’s heavy debt load and lack of dividends overshadow these constructive elements, however AMC is targeted on assuaging its debt.”
Reese stated the corporate should chip away at $3 billion in debt repayments “coming due over the subsequent three years.”
Key Objects To Watch: Field workplace outcomes and upcoming releases might be among the many prime objects to observe.
The corporate is optimistic for the second half of the yr. Nonetheless, AMC expressed considerations that the Hollywood Strikes from 2023 would proceed to affect the second-quarter field workplace.
Information from BoxOfficeMojo reveals the primary quarter home field workplace totaling $1.61 billion, which was down 6.6% year-over-year.
“We’re ebullient concerning the upcoming movie slate, and we anticipate to see an more and more sturdy field workplace because the yr progresses,” the corporate stated.
Complete field workplace from January to February was down 45% in comparison with the identical months in 2020.
The winter 2024 field workplace, which incorporates January, February and a portion of March was down 21.6% year-over-year in response to information from BoxOfficeMojo
The 2 greatest film releases by home field workplace occurred in early March outdoors of the winter field workplace season.
One other merchandise to observe will probably be whether or not CEO Adam Aron addresses AMC’s excessive debt ranges and any financing updates.
Worth Motion: AMC inventory trades at $3.19 versus a 52-week buying and selling vary of $2.38 to $54.97. AMC inventory is down 94% over the past yr and down 48% year-to-date in 2024.
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