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AMC Entertainment Holdings asset management company It is scheduled to report its third-quarter financial results on Tuesday.
The Kansas City, Missouri-based company expects a third-quarter net loss of 24 cents per share on quarterly revenue of $961.09 million. Benzinga Pro.
The second season, the theater chain report mixed results. AMC’s second-quarter net loss per share was 20 cents, slightly below expectations for a loss of 19 cents per share.
See also: Jim Chanos Long AMC Entertainment Stock, Short APE: Why He Expects Spreads to ‘Crash’
The company reported quarterly revenue of $1.166 billion, beating estimates by $1.16 billion.
“Going forward, we are very optimistic about the potential for AMC to continue to significantly improve its operating performance starting in the fourth quarter of 2022 and into 2023,” AMC CEO Adam Aron said in the second quarter release.
Aron didn’t mention the third quarter when talking about the significantly improved operating results. He did note that July’s food and beverage numbers appeared to be the largest monthly numbers for its U.S. theaters in the company’s history, but he warned of a slowdown in the third quarter.
“For full transparency, there are very few new big movies coming out in August and September, so it’s going to slow down for a few weeks, but then it’s the fourth quarter,” Aron added.
See also: Is AMC Entertainment gaining momentum?Here’s what to watch
analysts take
Wedbush analysts on Thursday reiterated AMC’s underperformance with a $2 price target, underscoring underlying weakness in the theatrical business.
“Content volumes have yet to return to pre-pandemic levels, and release bugs such as August to October were largely the result of last year’s production delays,” Wedbush analysts wrote in a note to clients.
While the analyst firm acknowledged that AMC has a cash position “to weather the downturn,” the stock is still too expensive. Wedbush even awarded the stock a premium multiple due to its more than 90% retail ownership, but still expects it to underperform.
“However, since APE is trading below $2 per share and should be in line with AMC’s, we recommend a pair trade,” Wedbush said.
In early August, AMC declared a special dividend in the form of an APE, or AMC Preferred Units ape. At the close of business on August 15, one APE was allocated for each outstanding share of AMC’s Class A common stock. APE units have been on a downward trend since their inception.
Take a look at this: Is AMC Entertainment gaining momentum?
AMC price action: AMC’s 52-week high was $34.33 and its 52-week low was $5.47.Stock up/down
photo: Paul Suberman via Flickr.
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