Analysts Now Expect Big AMC Earnings Results
Analysts are now expecting big AMC Entertainment (NYSE:AMC) earnings results as the movie theatre chain’s second quarter report is only around the corner.
AMC will report its second-quarter results on Tuesday, August 8 after the closing bell.
One of the biggest reasons analysts are anticipating big AMC earnings results is primarily due to the rise of box office numbers.
For example, in July, the company announced new high breaking records in its entire 103-year history where more than 7.8 million moviegoers attended AMC theatres during the weekend of “Barbenheimer”.
This growing trend has been seen all throughout 2023.
“The consensus among analysts is for the company to report an 80% YoY improvement in loss per share numbers, with an expected loss of 4 cents per share,” says TheStreet.
“Revenues are expected to top $1.27 billion, representing nearly 10% YoY growth. And should AMC hit those numbers, the company will be only 20% below its Q2 2019 (i.e., pre-pandemic) revenues.
Based on the solid box office in Q2, there’s good reason to believe AMC should once again beat Wall Street consensus.”
For Q1, AMC beat Wall Street expectations marking the company’s strongest quarter in four years.
“Our results for the first quarter of 2023 represent AMC’s strongest first quarter in four full years.
We kicked off 2023 by continuing on our positive glide path to recovery, with more than a 21% growth in total revenues and a $69 million improvement in Adjusted EBITDA compared to the previous year.
The first quarter of 2023 and fourth quarter of 2022 mark the first two consecutive quarters of EBITDA since March of 2020.
This progress is a testament to the ongoing recovery in the industrywide box office, as well as AMC’s enduring commitment to the excellence and innovation as our guests enjoy a superb movie-going experience at our theatres,” said AMC CEO Adam Aron.
Also Read: AMC CEO Provides New Update on High FTDs This Year
High Box Office Numbers Indicates Big Growth for AMC
Today’s high box office numbers indicate big growth for AMC Entertainment as revenue nears pre-pandemic levels.
Box Office Mojo reports more than$2.8bn in gross revenue for the second quarter of 2023 alone.
That’s more than Q1 box office numbers at $1.7bn.
The industry expects The Flash from Warner Bros’ DC is heading for a Friday around $26M, which will yield a 3-day around $64M, and 4-day north of $72M+ across 4,234 movie theaters.
Spider-Man: Across the Spider-Verse is looking at a $8.4M third Friday, $28.9M third weekend, and running total of $286.8M by Monday, which is 14% ahead of the first Tom Holland movie, Spider-Man: Homecoming at the same point in time (that movie finaling at $334.2M), according to Deadline.
So far, the number 1 release across the industry for Q2 is The Super Mario Bros. Movie, grossing more than $571 million.
Macquarie Analyst Chad Beynon expects to see big growth in AMC Entertainment.
“We expect AMC’s business to grow with the market and benefit from strong flow-through given significant fixed costs in the business,” the analyst predicted.
The analysts with Macquarie Research anticipate that domestic industry box-office revenue will reach $8.7 billion in 2023.
If that happens, it will represent a 19% year-over-year improvement.
“Road to recovery getting better with box-office strength,” said Macquarie Research analyst Chad Beynon.
“Overall, AMC is highly optimistic about film volumes recovering to pre-pandemic levels over the next few years, supported by growing theatrical aspirations from the likes of Amazon and Apple,” he continued.
The analyst firm also pointed to concession spending at AMC, with first-quarter food and beverage spending per person hitting an all-time high of $7.99, a 50% increase over 2019.
Also Read: Goldman Sachs Gives AMC a New Price Target of $175
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I hope Adam’s girlfriend Kat keeps the phone away from him in case AMC squeezes tomorrow
Leave your thoughts below.