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Cinemark Holdings (CNK) Lags Q3 Earnings, Tops Revenues

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Cinemark Holdings Inc. (CNK - Free Report) is a leading motion picture exhibition company globally. As of Jun 30, 2017, Cinemark operates 337 theatres with 4,544 screens in in 41 states in the U.S. and internationally in 12 countries, mainly in Mexico, South and Central America.

Cinemark Holdings has been opening and renovating theatres with state-of-the-art amenities. The company’s recent promotional plan of upgrading Connections Loyalty Program, with no charges, for members of Cinemark XD auditoriums bodes well. We believe that such renovations and attractive promotional offers should help the company witness subscriber growth in the to-be-reported quarter.

On the other hand, while theater chains remain the preferred choice for film studios, the recent trend of movie watchers opting for streaming services is making film studios seek better terms in box-office revenues with large-screen theater companies. This might hamper profitability.

Cinemark currently has a Zacks Rank #4 (Sell). A better-ranked stock in this space is IMAX Corp. (IMAX - Free Report) which currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Cinemark has generated a positive average earnings surprise of 15.54% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Cinemark’s Q3 2017 bottom line fell below with the Zacks Consensus estimate. Our consensus earnings estimate called 35 cents per share and the company posted figure was 33 cents per share. Investors should note that these figures take out stock option expenses.

Revenue: Cinemark reported total revenue of $710.7 million which surpassed the Zacks Consensus Estimate of $707.9 million.

Key States to Note:  In the reported quarter, Cinemark’s average screen count was 5,939, up 1% year over year. Average ticket price was $6.32, up 1.8% year over year. Average attendance was 67.3 million, down 11.7% year over year.

Cinemark Holdings Inc Price and EPS Surprise

 

Cinemark Holdings Inc Price and EPS Surprise | Cinemark Holdings Inc Quote

Check back later for our full write up on this Cinemark Holdings earnings report later!  

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