What's Going On With AMC Entertainment Stock Thursday?

AMC Entertainment Holdings Inc AMC shares are trading lower Thursday on the heels of the company’s fourth-quarter financial results.

What Happened: AMC said fourth-quarter revenue increased 12% year-over-year to $1.1 billion, which beat the consensus estimate of $1.05 billion, according to Benzinga Pro. The company reported a quarterly loss of 54 cents per share, which beat analyst estimates for a loss of 70 cents per share.

Adjusted EBITDA increased 193% year-over-year to $42.5 million. Net cash used in operating activities was $77.8 million in the fourth quarter. AMC said it ended the quarter with $884.3 million in cash and equivalents.

AMC CEO Adam Aron attributed much of the company’s revenue growth and adjusted EBITDA improvement to the success of the Taylor Swift and Beyoncé concert films released in the fourth quarter.

“AMC has tightened operating hours, mitigated costs, right-sized our theatre portfolio, pushed the innovation envelope in merchandise and food & beverage sales, as well as established a new revenue stream with concert movie distribution,” Aron said.

“Given AMC's proven ability to thread the needle in coping with one Herculean challenge after another, we are confident in our company's future.”

Aron also noted that the domestic box office in January and February was down 45% compared to the same pre-pandemic months.

“AMC believes that the box office will start to strengthen again as soon as this coming month of March, in some of the summer months and especially in the latter third of this year,” the company said.

Don’t Miss This: AMC Entertainment Q4 Earnings Highlights: Revenue Beat, EPS Beat, ‘Stunning’ Results From Taylor Swift, Beyonce Films

AMC Price Action: AMC shares were down 10.1% at $4.48 at the time of publication, according to Benzinga Pro.

Photo: Dave Dugdale from Flickr.