AMC’s Q1 Beat Not Enough to Force Analysts to Change Their Negative Ratings
2022.05.10 16:42
AMC’s (AMC) Q1 Beat Not Enough to Force Analysts to Change Their Negative Ratings
Shares of AMC Entertainment (NYSE:AMC) are up almost 4% in pre-market Tuesday after the company delivered results ahead of Wall Street expectations.
AMC reported a Q1 adjusted loss per share of 52c, compared to a loss per share of $1.42 in the same period last year and the consensus estimates of a loss per share of 62c. Revenue came in at $785.7 million in the period, up from $148.3 million in the year-ago quarter and above the expected $769.9 million.
Admissions revenue stood at $443.8 million, up from $69.5 million in the year-ago period, while analysts were expecting $394.9 million. The company reported a consolidated attendance of 39.08 million, compared to 6.8 million in the year-ago quarter.
Wedbush analyst Alicia Reese lowered the price target to $4.00 per share from the prior $5.00 on the Underperform-rated AMC stock following earnings.
“We remain optimistic about the exhibition industry with normalization after the content lull in Q1, and we expect attendance to meaningfully improve throughout the balance of 2022… We expect continued volatility, with an uncertain long-term multiple given its ownership and the possibility that at some point AMC will launch its own cryptocurrency. We reiterate our UNDERPERFORM rating as shares remain above our price target,” Reese said in a client note.
Citi analyst Jason Bazinet said AMC delivered mostly “in line results.” He remains Sell-rated with a $6.00 per share price target.
“AMC’s 1Q22 revenue was just shy of the Street, while Adj. EBITDA finished slightly ahead of consensus estimates. Given the relatively in line results and optimistic commentary, we would not be surprised if AMC shares traded higher,” Bazinet told clients.
By Senad Karaahmetovic
