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Cinemark Holdings (CNK) Q2 Earnings: What's in the Cards?
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Cinemark Holdings Inc. (CNK - Free Report) is slated to report second-quarter 2016 results on Aug 9, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 18.75%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters, with an average beat of 4.14%. Let’s see how things are shaping up for this announcement.
Cinemark Holdings is a leading motion picture exhibition company which operates 338 theatres and 4,551 screens in 41 states of U.S. and 178 theatres and 1,289 screens in 14 Latin-American countries, as of Mar 31, 2016.
Of late, Cinemark Holdings has been opening and renovating theatres with state-of-the-art amenities. It recently announced the construction of a 14-screen, all-digital movie theater that will feature the company's Luxury Lounger electric reclining seats. The theater is set to open in the Renaissance Marketplace shopping center by 2018. Cinemark Holdings also announced plans to renovate and upgrade its Ann Arbor 20 theatre by adding Luxury Lounger electric reclining seats to the auditoriums.
However, Cinemark continues to face threat from alternative movie streaming services such as Netflix, Inc. (NFLX - Free Report) and Time Warner Inc.’s HBO Now and Hulu. While theater chains remain the preferred choice for film studios, the recent trend of movie watchers opting for streaming services are making film studios seek better terms in box-office revenues with large-screen theater companies, which might hamper profitability.
Earnings Whispers
Our proven model does not conclusively show that Cinemark Holdingsis likely to beat the Zacks Consensus Estimate this quarter. This 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 elaborated below.
Zacks ESP: Cinemark Holdings has an earnings ESP of -1.92%. This is because the Most Accurate estimate stands at 51 cents while the Zacks Consensus Estimate is pegged at 52 cents.
Zacks Rank: Cinemark Holdings has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
Meanwhile,we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here is a company to consider instead as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Sprint Corp. (S - Free Report) , with an earnings ESP of +14.29% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Cinemark Holdings (CNK) Q2 Earnings: What's in the Cards?
Cinemark Holdings Inc. (CNK - Free Report) is slated to report second-quarter 2016 results on Aug 9, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 18.75%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters, with an average beat of 4.14%. Let’s see how things are shaping up for this announcement.
CINEMARK HLDGS Price and EPS Surprise
CINEMARK HLDGS Price and EPS Surprise | CINEMARK HLDGS Quote
Factors at Play
Cinemark Holdings is a leading motion picture exhibition company which operates 338 theatres and 4,551 screens in 41 states of U.S. and 178 theatres and 1,289 screens in 14 Latin-American countries, as of Mar 31, 2016.
Of late, Cinemark Holdings has been opening and renovating theatres with state-of-the-art amenities. It recently announced the construction of a 14-screen, all-digital movie theater that will feature the company's Luxury Lounger electric reclining seats. The theater is set to open in the Renaissance Marketplace shopping center by 2018. Cinemark Holdings also announced plans to renovate and upgrade its Ann Arbor 20 theatre by adding Luxury Lounger electric reclining seats to the auditoriums.
However, Cinemark continues to face threat from alternative movie streaming services such as Netflix, Inc. (NFLX - Free Report) and Time Warner Inc.’s HBO Now and Hulu. While theater chains remain the preferred choice for film studios, the recent trend of movie watchers opting for streaming services are making film studios seek better terms in box-office revenues with large-screen theater companies, which might hamper profitability.
Earnings Whispers
Our proven model does not conclusively show that Cinemark Holdingsis likely to beat the Zacks Consensus Estimate this quarter. This 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 elaborated below.
Zacks ESP: Cinemark Holdings has an earnings ESP of -1.92%. This is because the Most Accurate estimate stands at 51 cents while the Zacks Consensus Estimate is pegged at 52 cents.
Zacks Rank: Cinemark Holdings has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
Meanwhile,we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here is a company to consider instead as our model shows that it has the right combination of elements to post an earnings beat this quarter.
Sprint Corp. (S - Free Report) , with an earnings ESP of +14.29% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>