Weak Box Office to Diminish AMC Entertainment’s (AMC) Q1 Earnings – May 6, 2024
AMC Entertainment Holdings, Inc. (AMC – Free Report) is scheduled to release Q1 2024 results on May 8, after the market closes. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 22.9%.
AMC Entertainment’s earnings have notably surpassed the consensus mark in each of the last four quarters, with the average surprise being 50.4%.
How are estimates made?
The Zacks Consensus Estimate has widened to a loss of 62 cents per share from a loss of 60 cents over the past 7 days. In the year-ago quarter, the company suffered a loss of $1.30.
The consensus mark for revenue is pegged at $951.4 million, suggesting a 0.3% decline from the year-ago reported figure of $954.4 million.
Key Factors to Consider
AMC Entertainment’s quarterly revenues will likely have been hurt by weak box office performance. It is likely that fluctuations in consumer behavior, macroeconomic conditions and the release schedule of major films have negatively impacted its revenue in the quarter under review.
The Zacks Consensus Estimate for ticketing, food and beverage and other theater revenues is estimated at $506 million, $312 million and $83 million, indicating a decline of 5.2%, 5.2% and 9 .8% from previous year levels, respectively.
However, improved food and beverage offerings at concession stands and Dine-In theaters, along with the expansion of theater venues in the US, Europe and the Middle East, are anticipated to have helped top revenue.
However, rising interest rates and inflationary pressures are expected to have emerged as significant concerns, leading to increased costs across various aspects of the business. In particular, inflationary pressures on wages and costs are anticipated to have placed additional pressure on AMC’s operating expenses, potentially reducing profit margins.
Despite these challenges, the company remains focused on overcoming these obstacles and maintaining a resilient position in the market.
What the Zacks Model Reveals
Our proven model does not conclusively predict a decline in AMC Entertainment’s profits this time around. It doesn’t have the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) – to increase the chances of an earnings decline.
ESP Profit: AMC has an Earnings ESP of 0.00%. You can discover the best stocks to buy or sell before they are reported with our Earnings ESP filter.
Zacks Rank: AMC currently has a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are a few stocks from the Zacks Consumer Discretionary space that investors might want to consider, as our model shows they have the right combination of elements to post an earnings beat this season.
Central Garden & Pet Company (CENTO – Free Report) currently has Earnings ESP of +4.32% and a Zacks Rank of 2. You can see The complete list of today’s Zacks #1 Rank stocks here.
CENT’s earnings in the upcoming quarter are suggested to increase by 15.3%. It reported better-than-expected earnings in each of the last four quarters, with the average surprise being 37.8%.
Funko, Inc. (FNKO – Free Report) currently has Earnings ESP of +6.90% and a Zacks Rank of #2.
FNKO’s earnings in the upcoming quarter are expected to improve 40.8%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, with the average surprise being 42.8%.
Fox Corporation (FOXA – Free Report) has an Earnings ESP of +8.73% and a Zacks Rank of 3.
FOXA is expected to post a 23.4% increase in earnings in the to-be-reported quarter. The company has reported better-than-expected earnings in each of the last four quarters, with an average surprise of 71.1%.
Stay up to date on upcoming earnings announcements with the Zacks Earnings Calendar.
Just $1 to see all Zacks Buys and Sells
We’re not kidding.
Several years ago, we shocked our members by offering them 30-day access to all of our picks for the total price of just $1. No obligation to spend another penny.
Thousands took advantage of this opportunity. Thousands didn’t – they thought there must be a problem. Yes, we have a reason. We want you to know our portfolio of services such as Surprise Trader, Stocks Under $10, Tech Innovators,and more, which closed 228 positions with double and triple-digit gains in 2023 alone.
See the shares now >>
