Analyst firm Benchmark raised its growth estimates for AMC Entertainment (NYSE:AMC) Friday, citing better-than-expected domestic box office performance.
AMC will be reporting its fiscal first-quarter results before market open on May 5.
Benchmark now estimates that AMC will report first-quarter revenue of $912 million, up from its prior estimate of $831 million.
Analysts surveyed by FactSet are looking for first-quarter revenue of $930 million.
“Domestic box office exceeded our expectations,” Benchmark analyst Mike Hickey wrote in a note released Friday.
The analyst firm also raised its estimate for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to a loss of $37 million from its prior estimate of an $86 million loss.
Analysts surveyed by FactSet are looking for an EBITDA loss of $33 million.
Benchmark currently has a hold rating for AMC Entertainment.
Benchmark’s Hickey expects AMC to raise capital as soon as the settlement is resolved.
“We think AMC will immediately tap the capital markets on a successful transaction,” he wrote. “The capital raise would likely be used to provide relief to AMC’s significant net debt obligations.”
AMC stock closed up +0.50% on Friday but fell more than -5% in the past five trading days.
The movie theatre stock is up nearly +27% this year-to-date.
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AMC Stock News Today
AMC FTDs reached new heights in Q1 of 2023.
Its record date of highest FTDs in one single day happened on February 22nd, when AMC FTDs reached $61,047,531 in value, equivalent to 10,007,792 total FTDs priced at $6.10.
AMC FTDs closed at $20,402,436 by the end of the first quarter this year, equivalent to 4.1 million FTDs dated on March 31st.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.
Despite AMC Entertainment well on the path to recovery, short sellers continue to demonstrate strong conviction.
S3 Partners estimates AMC short sellers paid a total of $1.91 billion in stock borrow fees in the first quarter of 2023, up from $1.54 billion in the fourth quarter of 2022.
In March, AMC stock was ranked the #1 stock with the highest borrow fee rate according to data from S3 Partners.
AMC’s cost to borrow shot up to 1,000% during the start of the second quarter this year.
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