Theater company AMC Entertainment (NYSE:AMC) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
AMC Entertainment met analysts’ revenue expectations last quarter, reporting revenues of $1.03 billion, down 23.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates.
Is AMC Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AMC Entertainment’s revenue to decline 5.1% year on year to $1.33 billion, a reversal from the 45.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 4 upward revisions over the last 30 days (we track 7 analysts). AMC Entertainment has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.8% on average.
Looking at AMC Entertainment’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Life Time delivered year-on-year revenue growth of 18.5%, meeting analysts’ expectations, and Bowlero reported revenues up 14.4%, topping estimates by 4.3%. Life Time’s stock price was unchanged following the results.
Read our full analysis of Life Time’s results here and Bowlero’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 2% on average over the last month. AMC Entertainment is up 4.7% during the same time and is heading into earnings with an average analyst price target of $4.64 (compared to the current share price of $4.38).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
