Hollywood movies are big business, with production companies spending 10’s of millions of dollars on a single film. These films reach every major market which enables them to expose the films to a massive worldwide audience. But they need a place where people can see these films, and that is where our Zacks Bull of the Day,
AMC Entertainment Holdings ( AMC - Free Report) comes into the picture. This Zacks Ranked #1 (Strong Buy) operates as a theatrical exhibition company primarily in the United States and internationally. It owned or interests in theatres and screens. AMC Entertainment Holdings, Inc. is based in Leawood, Kansas. Recent Earnings In late February AMC reported Q4 16 earnings where they beat both the Zacks consensus earnings and revenue estimates. The company set fourth quarter records for all revenue categories; admissions, food and beverage, and other. On a sequential basis AMC saw increases in total revenues +18.1%, admission revenues +18.1%, food and beverage revenues +16.6%, adjusted EBITDA +22.4%. Recent Acquisitions During the fourth quarter AMC acquired both Odeon & UCI Cinemas Holdings, and Carmike Cinemas Inc. Then on March 28th, AMC completed the acquisition of Nordic Cinema Group. This last acquisition made AMC the largest theater company in the world. Management’s Take on the Recent Moves According to Adam Aron, CEO and President, “ This acquisition contributes immediately to AMC’s continuing growth, furthers our geographic diversification and provides the potential for significant future growth opportunities in key European markets. Clearly, Europe will be a significant part of the AMC growth story, and AMC looks forward to bringing to Europe the innovative theatre experiences for which we are known in the U.S. to delight movie fans across Europe." Mark Way, Managing Director Odeon Cinemas Group and President, AMC Europe, remarked, “ Uniting the Odeon and Nordic teams brings together some of the most experienced and respected cinema operators in Europe. We’ll create a successful integrated business that delivers further growth through market leading experiences for our guests”. Jan Bernhardsson, Chief Operating Officer of Odeon Cinemas and Executive Vice President, AMC Europe, added, " I am excited to be joining Odeon and AMC. The market leading positions of Odeon and Nordic are already impressive, and together we will be even stronger. The prospects ahead for AMC in Europe are ever so bright." Price and Earnings Consensus Graph As you can see in the graph below, the recent acquisition of Nordic Cinema Group caused the future earnings estimates to increase.