AMC Networks Stock Slips: What's Behind the Sharp Revenue and EPS Decline?
Portfolio Pulse from Anusuya Lahiri
AMC Networks Inc. (NASDAQ:AMCX) reported a significant decline in fiscal first-quarter 2024 revenue and EPS, missing analyst consensus estimates. Revenue fell 16.9% year over year to $596.46 million, and adjusted EPS dropped 55.7% to $1.16. The company saw decreases in affiliate revenue, advertising revenues, and content licensing revenues, but reported a 2% increase in streaming subscribers to 11.5 million. Despite the downturn, streaming revenues rose 3% to $145 million. AMC Networks stock lost close to 8% in the last 12 months and is down 4.08% in premarket trading.
May 10, 2024 | 1:06 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
AMC Networks reported a significant decline in Q1 2024 revenue and EPS, missing estimates. Despite a rise in streaming subscribers, the stock is down 4.08% premarket.
The sharp decline in revenue and EPS, combined with the miss on analyst consensus estimates, is likely to negatively impact investor sentiment and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to AMC Networks through the Invesco Leisure And Entertainment ETF, which may see indirect impact from AMC's earnings miss.
As PEJ holds AMC Networks stock, the negative earnings report from AMCX could indirectly affect PEJ's performance, though the impact may be diluted across the ETF's diversified portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Schwab Strategic Trust Schwab Crypto Thematic ETF is mentioned as a way to gain exposure to AMC Networks, potentially facing indirect impact from AMC's performance.
Though STCE's primary focus is not directly related to AMC Networks, its inclusion as a method to gain exposure to AMC suggests potential indirect impact from AMC's financial performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50