AMC Entertainment Holdings Inc. has recently announced that they will be releasing its third quarter earnings on November 8, 2021. Additionally, it will host a webcast at 5:00 p.m. EST on the same date. Here is an overview of what to expect from the company’s disclosure.
What do Analysts estimate?
Zacks Consensus Estimate for loss per share is pinned at $ 0.42. Even though the figure is not positive, it indicates a growth of 40% than that of the second quarter. In addition, the estimate also indicates an increase of 92.63% year-over-year.
The Earnings ESP (Estimated Surprise Percentage) is pegged at 6.69%. This rightly suggests that AMC’s reported earnings would surpass the estimates.
The estimated revenue is pinned at $768.63 million. This indicates a whopping 543.21% increase from the previous year. The figure is higher than other analysts’ estimates of approximately $720 million. This indicates that Zacks’ estimate is anticipating a higher revenue growth than other analysts. Also, if the company is successful in hitting the estimate, it will surpass previous quarter’s operating cost of $740 million. It will be another green signal in the company’s overall performance.
However, the analysis report also mentions that the earnings over the past five years has declined by 269%. The number is huge but the company has been performing better in the recent quarters. It is expected to overcome its negative earnings trail soon.
The company’s second quarter earnings had surpassed the estimates by 22%. It was the first quarter to beat the estimates after more than three quarters that failed to meet the estimates. The reported loss per share was -$0.71, much less than the expected loss of -$0.91.
The reported revenue was $444.7 million, much higher than the estimate of $382.1 million. The net loss narrowed to $344 million compared to a loss of $561.2 million last year.
Key financial highlights for the second quarter include:
- In April 2021, launched an At-the-Market (ATM) equity program to sell up to 43 million shares of Class A common stock and raised approximately $427.5 million before commissions and fees.
- During May 2021, received the remaining cash consideration of approximately $31.9 million on the completion of the sale of our remaining equity interest in our theatres in Lithuania.
- The month of June 2021, raised $230.5 million of cash from the sale of 8.5 million shares of Class A common stock to Mudrick Capital Management, L.P.
- In June 2021, launched an ATM equity program to sell 11.55 million shares of Class A common stock and raised approximately $587.4 million before commissions and fees. This brings the total ATM equity raised in the second quarter of 2021 to approximately $1.246 billion, before commissions and fees.
The first quarter’s performance, however, was not in the same line as the second quarter. AMC’s economic performance had taken a downturn due to the Covid-19 pandemic. The company reported a net loss of $567 million and a loss per share of $1.42 which was higher than the consensus estimate of $1.38. Prior to this quarter, the company had revealed that its revenue for FY20 had declined by a huge 88% year-over-year. CEO Adam Aron then stated that AMC was facing “most challenging market conditions in the 100-year history of the company”.
AMC’s Soaring Stock Prices
AMC’s stock performance has been doing well lately. The latest reported stock price is $38.39. The price has surged by 4.64% today. This week so far has seen its stock prices surging. After the company released a press release on Monday announcing the date for its third quarter earnings call, the stock prices rose by 5%, opening at $35.65 and closing at $37.07. It’s shares have shot up almost by more than 1700% year-over-year. Zacks has ranked the company’s stocks at #2 (BUY) which suggests investors to invest in it.
October or Uptober for AMC?
The month of October this year proved to be a boon for the company. AMC announced a press release on Sunday stating that “the domestic industry box office for October 2021 is estimated to come in considerably higher than that of any previous month since February of 2020.” This indicated towards the fact that the movie or theatre business is going to back to normal soon after the devastating Covid-19 pandemic.
Not only did the company perform well in its parent country but also internationally. The press release mentions, “October 2021 ticket admission revenues at AMC’s international theatre locations also were the highest of any month since the pandemic caused the shutting of theatres back in 2020.”
October’s box office collection surpassed $100 million accumulating a monthly total of $545 million. November is also expected to aid in the company’s performance with Marvel Eternals, Ghostbusters and other movies set to release this month.
Analysts estimate the loss per share for the fourth quarter to be $0.19 against a loss of $5.70 last year. It indicates a growth of 93.97% year-over-year. The estimated revenue is $1.12 billion against a revenue of 162.5 million. This suggests a huge growth of 589.54% from the previous year.
The Annual Forecast estimates loss per share for the year to be $2.69 against a loss of $16.15 last year. It indicates a growth of 83.34% year-over-year. The estimated revenue is $2.48 billion against a revenue of $1.24 billion last year. The indicates an increase of 99.79% than last year.
AMC and Cryptocurrency
The leading movie theatre operator recently announced that it would accept digital currencies or cryptocurrencies as payments for theatre tickets. The cryptos it is considering include Bitcoin, Ethereum, Lithium and Dogecoin. Adam Aron, AMC’s CEO recently tweeted asking whether they should take Shiba Inu into consideration or not. More than 81% people voted in favour of Shiba Inu.
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