AMC Entertainment Earnings Could Trigger a New Wave of Short Selling

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AMC Entertainment reports third-quarter earnings on March 20. Its shares have been falling for some time, and the average analyst price target is $5.25, meaning a 84% downside. The company has been trading on the fundamentals of its business for a while, but the company’s upcoming earnings report could trigger a new wave of short sellers. Investors could also be tempted to invest in meme stocks after seeing the results of its latest quarterly results.

Despite disappointing numbers, Wall Street analysts remain bearish on AMC’s stock. Last week’s results surpassed expectations and helped lift the movie chain’s stock more than 3%. But a recent report from Credit Suisse indicates that AMC’s revenue will rebound by the end of the year, possibly reaching ninety percent of pre-pandemic levels. And a recent survey showed that nearly two-thirds of AMC’s A-List subscribers are now paying their subscriptions, and the company’s A-List is performing better than the industry’s average.



While the company beat Wall Street’s estimates on Wednesday, it missed analyst expectations and posted a loss of 53 cents a share. The company reported revenue of $717.1 million, which was below Wall Street’s projections. In spite of the strong performance, Aron said the movie theater circuit still hasn’t fully recovered to pre-pandemic levels. Regardless of its performance, investors shouldn’t be alarmed about AMC’s prospects.

In addition to its quarterly results, the company also announced that it plans to pursue crypto as a payment option for some of its films. The CEO cited that Dogecoin is being considered as an option, but said it’s not likely to make a big difference on the company’s financials for now. As long as the company has a positive outlook for Q4 and 2022, the stock may go up again. AMC’s market cap was $717 million. The consensus for the quarter was $0.54 per share.


On Wednesday, AMC Entertainment reported its 1Q 2021 financial results. Its revenue fell -8% QoQ and -84% YoY compared to the same period last year. However, the company’s A-List is back in business as a “paying” subscription service. AMC is offering free popcorn to investors in return for a share in its stock. Currently, the company is up 3% on the day.

Despite the recent dip in the stock price, the movie industry has been doing well so far. The company is up 3% on Wednesday after releasing its Q3 2021 results. The company expects its top line to increase by +101% in FY 2021 and -92% in FY 2022. The stock price has been rising since AMC Entertainment’s announcement. As of April 13, the shares of the company are down 6%. The market is now waiting for the upcoming results of the theater operator.

During the first quarter of 2021, AMC’s revenue decreased -89% YoY. The company’s total attendance fell -9% from 60.5 million in 1Q 2020 to 6.8 million in 1Q 2021. This is a significant drop in attendance and could lead to a drop of up to 10% in AMC’s quarterly earnings. AMC’s Q3 numbers look promising but it is still too early to tell whether these are sustainable.

 

Despite the company’s recent struggles, the company has managed to beat expectations. Its quarterly revenues of $717.1 million were well above expectations. Nevertheless, the movie theater circuit has not recovered to pre-pandemic levels, and AMC’s revenue per screen has declined even more. But despite these difficulties, the company has remained profitable amidst a downturn in the movie industry. The firm’s earnings are expected to be more than double the previous year’s.

After reading the comments of the last analyst, AMC has remained bullish for the past four quarters. This is due in part to a strong performance in its core business and the company’s ability to weather the current crisis. Its most recent earnings report is a bit disappointing compared to previous quarters, but the stock has been gaining 3% on the day. AMC is a popular choice among moviegoers for its diversity and affordability.

AMC’s quarterly earnings report shows that its business is operating profitably. The company’s admission revenue, which rose from $62.9 million a year ago, topped projections by the end of the quarter. Its food and beverage business soared to $265.2 million from $29.1 million a year ago. Its operating costs were slightly wider than its revenue, which resulted in a loss in the third quarter. The movie industry is facing more challenges than ever.


Also Read: AMC Entertainment Investor Relations

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