The AMC Burbank 16 and the Batman bronze statue in Downtown Burbank.
AaronP/Bauer-Griffin | GC Photographs | Getty Photographs
Shares of AMC Entertainment whipsawed in prolonged buying and selling Monday after the corporate posted a smaller-than-expected loss for the third quarter.
Here is what the corporate reported in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by Refinitiv:
- Loss per share: 44 cents vs. 53 cents anticipated
- Income: $763.2 million vs. $708.3 million anticipated
AMC posted a web loss narrowed to $224.2 million, or 44 cents per share, for the third quarter. That loss is manner down from the $905.8 million, or $8.41 per share, they misplaced within the year-earlier interval. Analysts had anticipated the corporate to lose 53 cents per share, based on knowledge from Refinitiv.
The movie show chain reported income of $763.2 million, topping the $708.3 million analysts had anticipated.
The corporate’s inventory initially popped after the outcomes had been launched. As of 4:35 p.m. ET, nevertheless, shares had been down 1.2%. AMC shares have been on the middle of this 12 months’s meme inventory craze, skyrocketing greater than 2,025% in 2021.
AMC mentioned that each one of its home cinemas had been open as of Sept. 30, as had been 99% of its worldwide theaters. The movie show chain famous that it welcomed again 40 million friends in the course of the third quarter throughout areas within the U.S., Europe and Center East because of new blockbuster titles and rising vaccination charges.
In the course of the quarter, the corporate noticed admission income rise to $425.1 million from $62.9 million within the year-ago interval. Its meals and beverage gross sales additionally surged to $265.2 million from simply $29.1 million on a year-over-year foundation.
Nonetheless, AMC’s working prices outpaced its income, main the corporate to publish a loss for the quarter.
“Our monetary outcomes proceed to enhance,” CEO Adam Aron mentioned in a press release Monday. “One can see and really feel that our business and our firm are on a path of restoration and enchancment. Subsequently, our spirits are upbeat.”
“Nonetheless, even amidst such excellent news, we’re not but the place we would like and should be,” he mentioned. “We want to emphasize that nobody ought to have any illusions that there’s no more problem forward of us nonetheless to be met. The virus continues to be with us, we have to promote extra tickets in future quarters than we did in the latest quarter, and adjusted EBITDA continues to be effectively under pre-pandemic ranges.”
On the finish of the third quarter, AMC had greater than $1.8 billion in liquidity, together with money and undrawn revolving credit score strains. Aron mentioned the corporate doesn’t anticipate having to borrow below these strains of credit score within the subsequent 12 months.
This liquidity has allowed AMC to discover — and incorporate — new income streams. The corporate has already acquired new theater leases, begun to supply new content material, like concert events and sporting occasions, and it is expanding into the popcorn retail business.
That is breaking information. Please test again for updates.
