AMC Entertainment (AMC) to Report Q3 Earnings: What to Expect?
AMC Entertainment Holdings, Inc. AMC is scheduled to report its third-quarter 2023 results on Nov 8, after market close.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 100% and 4.5%, respectively. Also, the bottom and the top lines grew year over year.
AMC Entertainment’s earnings remarkably topped the consensus mark in the last four quarters, the average surprise being 44.2%.
How are Estimates Placed?
The Zacks Consensus Estimate for the company's third-quarter loss per share has contracted to 22 cents per share from 48 cents per share over the past 30 days. In the prior-year quarter, the company reported a loss of $2 per share.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
AMC Entertainment Holdings, Inc. price-eps-surprise | AMC Entertainment Holdings, Inc. Quote
The consensus mark for revenues is pegged at $1,246 million, suggesting growth of 28.7% from the year-ago reported figure of $968.4 million.
Key Factors to Consider
AMC Entertainment’s third-quarter revenues are likely to grow on a year-over-year basis on the back of solid attendance growth. As the number and quality of movie titles from the company’s studio partners are notably increasing, movie theatres are seeing captivating audiences and driving attendance back to AMC theatres.
The release of anticipated movies like Barbie, Oppenheimer, Mission Impossible – Dead Reckoning Part One and Sound of Freedom has added to the uptrend. Furthermore, an increase in food and beverage revenues, thanks to varied offerings at concession stands and Dine-In theatres and growth in theatre openings in the U.S., Europe, and the Middle East, bodes well.
However, currently winding strikes by writers and actors accompanied by ongoing macroeconomic uncertainties are likely to dent the growth momentum, partially.
For the third quarter, the Zacks Consensus Estimate for revenues from admissions, food and beverage, and other theater is pegged at $712 million, $431 million and $103 million, respectively. These values portray the year-over-year growth rate to be up 30.6%, 29.4% and 14%, respectively.
Meanwhile, the inflationary environment, and increased operating costs and expenses are likely to have partially put pressure on the company’s bottom line. However, despite the ongoing challenges, notable growth in attendance, and food and beverage revenue per patron are expected to partially offset these headwinds.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for AMC Entertainment this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: AMC has an Earnings ESP of -17.83%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which according to our model, have the right combination of elements to deliver an earnings beat this time around.
PlayAGS, Inc. AGS has an Earnings ESP of +650.00% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AGS’s earnings for the to-be-reported quarter are expected to be flat year over year. The company reported better-than-expected earnings in three out of the four quarters and remained flat on the remaining one occasion, the average surprise being 129.2%.
Warner Bros. Discovery, Inc. WBD has an Earnings ESP of +21.16% and a Zacks Rank of 3.
WBD’s earnings for the to-be-reported quarter are expected to decrease 152.9%. The company reported better-than-expected earnings in two out of the trailing four quarters and missed the same on the remaining two occasions, the average surprise being 551.2%.
The Honest Company, Inc. HNST has an Earnings ESP of +16.67% and a Zacks Rank of 3.
HNST’s earnings for the to-be-reported quarter are expected to increase 7.7%. The company reported lower-than-expected earnings in three out of the trailing four quarters and met expectations in the remaining quarter, the average negative surprise being 52.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
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The Honest Company, Inc. (HNST) : Free Stock Analysis Report
