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What's in Store for AMC Entertainment (AMC) in Q1 Earnings?

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AMC Entertainment Holdings, Inc. (AMC - Free Report) is scheduled to report first-quarter fiscal 2021 results on May 6, after market close.

The company is likely to see a decline in the bottom line when it reports first-quarter 2021 results. In the last reported quarter, its earnings missed the Zacks Consensus Estimate, however revenues surpassed the same by 12.8%. Nonetheless, both the top and the bottom line declined year over year.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of $1.15 per share compared with a loss of $2.22 per share in the year-ago quarter. The consensus mark for revenues stands at $147.8 million, indicating a decline of 84.3% from the prior-year quarter.

Factors to Note

The impact of the coronavirus pandemic is expected to be reflected in AMC Entertainment’s first-quarter results. The pandemic-related disruptions continue to hurt its revenues at admissions, food and beverage, and other theatre segments. The Zacks Consensus Estimate for Admissions revenues is pegged at $81 million, suggesting a decline of 85.7% from the prior-year quarter. The consensus estimate for Food and beverage revenues for first-quarter 2021 is pegged at $41 million, indicating a decline of 85.8% year over year. The consensus estimate for other theatre revenues is pegged at $11.2 million, suggesting a decline of 89.4% from the prior-year quarter.

Notably, the company is in the process of opening most of its theatre maintaining safety, cleanliness and social-distancing protocols. These efforts entail high costs that are likely to have weighed on the first-quarter performance.

Also, the dismal attendance trend is expected to have largely affected the first-quarter 2021 performance.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for AMC Entertainment this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.

Earnings ESP: Earnings ESP for AMC Entertainment is -25.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Playtika Holding Corp. (PLTK - Free Report) has an Earnings ESP of +18.87% and a Zacks Rank #2.

SeaWorld Entertainment, Inc. (SEAS - Free Report) has an Earnings ESP of +14.01% and a Zacks Rank #3.

Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of + 1.69% and a Zacks Rank #3.

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