We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Live Nation Entertainment, Inc. (LYV) - free report >>
Cinemark Holdings Inc (CNK) - free report >>
AMC Entertainment Holdings, Inc. (AMC) - free report >>
Madison Square Garden Entertainment Corp. (MSGE) - free report >>
Image: Bigstock
Admissions Revenues to Aid AMC Entertainment (AMC) Q2 Earnings
AMC Entertainment Holdings, Inc.’s (AMC - Free Report) continues to benefit from reopening of theaters. Consequently, robust Admissions revenues are likely to get reflected in the top line when it reports second-quarter 2021 results on Aug 9.
Reopening Of Theaters to Drive Growth, Cash Burn Persists
AMC Entertainment is focused on resuming its business. As of Apr 30, 2021, the company opened nearly 589 of 593 domestic locations and 110 of 357 international locations. During first-quarter 2021 conference call, the company informed that its theaters in Spain and Portugal are open along with much of its European estate. This timely resumption of operations might have driven the company’s second-quarter performance.
However, monthly cash burns are likely to have weighed on the company’s to-be-reported quarter’s bottom line. During first-quarter 2021, cash burn was approximately $120 million per month. Quarterly cash rent payments is likely to have been higher in second-quarter 2021. The cash rent in the second half of 2021 is expected to be higher. The company will have to pay some rent deferred from prior periods.
AMC Entertainment has been making comprehensive health and sanitation programs, including enhanced cleaning procedures and upgraded air filtration efforts, to ensure maximum safety for guests. These efforts entail high costs that are likely to have put pressure on the second-quarter performance.
Overall Q2 Expectations
The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of 91 cents, compared with a loss of $5.44 in the prior-year quarter. The consensus mark for revenues is pegged at $341.3 million, compared with $18.9 million in the year-ago reported figure.
AMC Entertainment, which shares space with Madison Square Garden Entertainment Corp. (MSGE - Free Report) , Live Nation Entertainment, Inc. (LYV - Free Report) and Cinemark Holdings, Inc. (CNK - Free Report) , has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.