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.
Of late, Cinemark Holdings has been opening and renovating theatres with state-of-the-art amenities. The company’s recent promotional plan of upgrading its Connections Loyalty Program free for members of Cinemark XD auditoriums bodes well. We believe such renovations and attractive promotional offers should help the company witness substantial 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). Its major competitors include AMC Entertainment Holdings Inc. (AMC - Free Report) , Six Flags Entertainment Corp. (SIX - Free Report) and IMAX Corp. (IMAX - Free Report) . All these stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cinemark has generated a positive average earnings surprise of 13.09% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Cinemark’s Q2 2017 net income was in line with the Zacks Consensus estimate. Our consensus earnings estimate called 44 cents per share and the company posted the same figure. Investors should note that these figures take out stock option expenses.
Revenue: Cinemark reported total revenue of $751.2 million which surpassed the Zacks Consensus Estimate of $747.1 million.
Key States to Note: In the reported quarter, Cinemark’s average screen count was 5,904, up 0.7% year over year. Average ticket price was $6.48, up 3.7% year over year. Average attendance was 69.4 million, down 4.9% year over year.
Check back later for our full write up on this Cinemark Holdings earnings report later!
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