$AMC Entertainment Holdings Inc(AMC.US)$ is set to report its second-quarter results after the market closes on Monday. The latest figures from Cinemark Holdings on Friday were a positive sign.
In the June quarter, $Cinemark Holdings Inc(CNK.US)$ sales were $294.7 million, up 158% from the March quarter, when vaccine appointments were still limited in many U.S. states. Analysts were only expecting sales of $255.8 million. The theater chain's net loss of $1.19 a share was wider than the $1.10 analysts had forecast, but it was slimmer than the loss of $1.75 a share in the first quarter.
Cinemark CEO Mark Zoradi said the recovery of the broader cinema business progressed faster than expected, with the North American industry box office more than tripling its performance from the first quarter.
"For Cinemark, the second quarter improved so materially that we were able to substantially reduce our net loss during the quarter," Zoradi said.
The better-than-expected sales could be a positive signal for AMC's results. Analysts forecast AMC's sales hit $382 million in the second quarter, with the company's loss slimming to 94 cents a share from $1.42 in the first quarter.
The earnings report doesn't mean people should bet on AMC stock, especially if they have a weak stomach. Unlike Cinemark, AMC is a meme stock; AMC shares have ridden a roller coaster of ups and downs in recent months amid a mix of short seller activity, options trading, and retail investor enthusiasm. Though the stock surged as high as $72.62 earlier this year, it is down about 35% over the past month. Its year-to-date gain stands at 1,442%.
Such gains have helped the company sell stock to bolster its balance sheet and acquire competitor locations, but AMC's underlying business and future earnings prospects don't seem to justify its current valuation, even following the recent decline. The mean among analysts' targets for the price is $5.25, according to FactSet.
Still, given the lack of significant news in the past month, the report could spark renewed interest in meme stocks on social media. AMC's prior report, issued May 6, preceded a mid-May to early-June run from $9 to as high as $72.62, after all.
Write to editors@barrons.com
(END) Dow Jones Newswires
August 06, 2021 17:14 ET (21:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Comment(19)
😇
Great
Curious what to expect. Regardless, I'll be holding mine until all shorts cover. Would be great if this becomes the catalyst needed to force a squeeze!
Like please
Like
To the moon
Good morning. Great news
upside?
Great
Time to get entertain
nice
holding...
yup good news.
Now I can cover my losses
Great news!
good deal, this article was only partially biased towards amc. most are completely. lol
like
123
good
Reason For Report