Leading movie theater company AMC Entertainment Holdings AMC is set to report second-quarter financial results after the market close Tuesday.
Here’s a look at the key earnings estimates and other items to watch.
Earnings Estimates: AMC is expected to report second-quarter revenue of $1.27 billion, according to analysts, as reported by Benzinga Pro.
The company reported revenue of $1.17 billion in the second quarter of last year and revenue of $954.4 million in the first quarter of the current fiscal year.
AMC has beat revenue estimates from analysts in each of the last eight quarters.
Analysts see the company reporting a loss of 5 cents per share for the second quarter. The company reported a loss of 20 cents per share in the second quarter of the last fiscal year and reported a loss of 13 cents in the first quarter of the current fiscal year.
AMC has beat EPS estimates from analysts in the last three quarters and beat estimates in seven of the last eight quarters.
What Analysts Are Saying: Analysts have been bearish on AMC shares moving forward with minimal coverage of the stock in recent months.
Here are the three most recent analyst ratings updates:
Citigroup reiterates Sell rating and $1.65 price target.
B. Riley Securities reiterates Neutral rating and $4.50 target.
Wedbush reiterates Under Perform and $2 price target.
Related Link: Why Meme Stock AMC Entertainment (AMC) Is Trading Higher
Key Items To Watch: Among the key items investors will be watching are box office revenue and the impact of blockbuster movies during the quarter.
While all eyes in the movie theater sector have been on “Barbie” and “Oppenheimer,” which will be attributed to the third quarter for AMC, there were multiple blockbusters that were released in the second quarter.
Four of the top domestic grossing films of 2023 came out in the second quarter, including:
The Super Mario Bros. Movie (1st), April 5, $574.2 million
Spider-Man: Across the Spider-Verse (3rd), May 5, $380.1 million
Guardians of the Galaxy Vol. 3 (4th), June 2, $359 million
The Little Mermaid (5th), May 26, $297.1 million
These blockbusters could lead to a strong quarter for box office revenue and concessions revenue for the company.
The Barbie Factor: Investors will be watching for commentary from AMC on how big of an impact “Barbie” could have on the third quarter, with the film recently passing a $1-billion box office gross globally.
With the success of “Barbie,” “Oppenheimer” and movies like those listed above, the January to August box office was up 22% year-over-year domestically, according to Deadline.
As the largest owner of movie theaters, AMC could stand to be one of the biggest beneficiaries from the success of “Barbie” and box office growth. With that said, third quarter and full-year guidance could come into play for investors.
AMC previously said it saw its “best week ever” for admissions July 21 to July 27, led by “Barbie” and “Oppenheimer.” The following week saw the company’s third best week for admissions since 2020.
"The monumental success of BARBIE and OPPENHEIMER has the entire movie and movie theatre industry abuzz, with discussions of new records and new benchmarks being realized seemingly wherever you turn. These two movies, along with the many others playing on our huge silver screens, continue to rewrite what is possible at the box office," said CEO Aron has been tweeting about the success of “Barbie” and proving the doubters wrong.
“Barbie has crossed $1 billion in movie theatre ticket sales worldwide. Oppenheimer crossed a half billion dollars. The ‘movie theatres are dead’ prognosticators are Ducking Wrong! Quack, quack,” Aron tweeted.
AMC's Cash Runway: Outside the box office success and future impact of “Barbie,” investors may also be watching to hear an update on liquidity from AMC.
A judge overturned a decision to convert AMC Preferred Equity Units APE into AMC common shares. Aron issued a shareholder letter saying the company needed to be in a position to raise equity, especially given the Hollywood work stoppage and strike.
“If we are unable to raise equity capital, the risk materially increases of AMC conceivably running out of cash in 2024 or 2025,” Aron said in the letter.
AMC Price Action: AMC shares are trading at $5.18 Monday versus a 52-week trading range of $3.77 to $27.49. Shares of the movie theater company are up 32% year-to-date in 2023.
Photo via Shutterstock.
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