AMC Entertainment earnings beat revenue expectations.
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AMC Entertainment Holdings beat revenue expectations as the easing of Covid-19-related public-health restrictions drew audiences back to theaters.
AMC (ticker: AMC), the largest movie theater chain in the world, posted revenue of $162.5 million in the fourth quarter, surpassing the average expectation of $142.3 million, according to the analysts tracked by FactSet.
The per-share loss for the quarter was $3.15 after charges. Analysts expected an adjusted loss of $3.24 a share.
Shares of AMC jumped 8% in after-hours trading after whipsawing around during the trading session, ending down 6%. They are up 134% over one year compared with the 35% gain in the S&P 500 in the period.
For the full year 2020, AMC reported revenue of $1.24 billion and a per-share loss of $16.15. Analysts expected a loss of $31.18 a share on sales of $1.2 billion, according to FactSet.
Adam Aron, AMC’s CEO, said he was optimistic about the continued recovery of the business, noting that moviegoers in critical Southern California markets like Los Angeles would soon be able to return to the theater.
AMC has raised more than $1 billion in cash since the fall to build a buffer against business interruptions. “This past year has presented AMC with the most challenging market conditions in the 100-year history of the company,” Aron said in a statement.
With vaccinations spreading in the U.S., more theaters reopening (including New York City last weekend), and a calendar of blockbuster movie releases up ahead, “we have reason to be optimistic about AMC’s ability to get to the other side of this pandemic,” Aron said.
For the full year 2019, AMC reported a loss of $1.08 a share on sales of $5.55 billion.
At least one analyst is pessimistic about a quick turnaround. On Wednesday Lightshed Partners’ Richard Greenfield initiated his coverage of AMC stock with a Sell rating and a price target of 1 cent, saying that at current levels it is “dramatically overvalued.”
