AMC Networks' Sales Drop As Analyst Warns Of 'Continued Pressure' On Revenue

AMC Networks Inc AMCX on Friday reported a decline in first-quarter sales.

The company witnessed "continued pressure to core revenue streams," according to JPMorgan. 

The AMC Networks Analyst: Analyst David Karnovsky maintained an Underweight rating, while reducing the price target from $8 to $6.

The AMC Networks Thesis: The company reported revenues and AOI (adjusted operating income) at $555 million and $104 million, missing estimates of $569 million and $108 million, respectively, Karnovsky said in the note.

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AMC Networks' domestic advertising declined by 15% in the quarter, which was not only worse than expected but also marked an acceleration from the 12% decline reported in the previous quarter, he added.

While reiterating their 2025 guidance, management indicated that there was "no noticeable impact on advertising from a macro perspective," while pointing to softness on the digital side, the analyst stated.

"The company was optimistic on streaming growth for the rest of the year which is reflective of benefits from rate increases, new series, and improved user engagement," he further wrote.

AMCX Price Action: Shares of AMC Networks had declined by 5.7% to $5.96 at the time of publication on Monday.

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