What Will Be AMC's Innovative Recovery Path Post-Pandemic? This Analyst Wants To Wait And Watch
Portfolio Pulse from Nabaparna Bhattacharya
AMC Entertainment Holdings, Inc. reported Q3 revenue of $1.41 billion, up 45.2% YoY. The company also entered into an equity distribution agreement to sell up to $350 million worth of shares. Despite a 16% decline in domestic box office attendance, AMC's success was attributed to a 30% increase in contribution per patron and strategic actions. Analyst Mike Hickey reiterated a Hold rating on AMC and lowered the FY23 and FY24 EBITDA and revenue estimates. AMC shares are trading lower by 15.31% to $8.55.
November 09, 2023 | 8:12 pm
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NEGATIVE IMPACT
AMC reported a 45.2% YoY increase in Q3 revenue and entered into an equity distribution agreement. Despite a decline in box office attendance, the company's success was attributed to strategic actions. However, an analyst has lowered the FY23 and FY24 estimates and AMC shares are trading lower.
AMC's Q3 revenue increase and strategic actions indicate a positive outlook. However, the lowered FY23 and FY24 estimates by the analyst and the decline in AMC's share price suggest a negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100