Back to top

Image: Bigstock

AMC Entertainment (AMC) to Post Q1 Earnings: What's in Store?

Read MoreHide Full Article

AMC Entertainment Holdings, Inc. (AMC - Free Report) is likely to witness a year-over-year decline in earnings when it reports first-quarter 2020 results. In the last-reported quarter, the company delivered a positive earnings surprise of 337.5%. Further, it has a trailing four-quarter beat of 38.3%, on average.

How Are Estimates Placed?

The Zacks Consensus Estimate for first-quarter loss is pegged at $1.49 per share, suggesting a deterioration from the year-ago loss of $1.21. For revenues, the consensus mark is pegged at $976.6 million, indicating a decline of 18.6% from the year-ago figure.

Let's take a look at how things have shaped up in the quarter.

AMC Entertainment Holdings Inc Price and EPS Surprise

 

Factors at Play

The coronavirus pandemic is expected to have materially affected AMC Entertainment’s performance in the first quarter.

Theatre closures along with dismal performance at admissions, food and beverage, and other theatre segments are likely to have impacted the first-quarter top line. Also, high operating and investment related costs are likely to have marred the bottom line. Moreover, a decline in traffic is expected to have negatively impacted the company’s performance. 

However, increased focus on operational efficiencies, digital enhancement, movie franchises, marketing and engagement programs, geographical expansion and cost-saving initiatives is likely to have aided the company in the to-be-reported quarter. 

What Our Model Says

Our proven model does not predict an earnings beat for AMC Entertainment this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.

Earnings ESP: AMC Entertainment has an Earnings ESP of -4.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AMC Entertainment, which shares space with Carnival Corporation (CCL - Free Report) , Cinemark Holdings Inc (CNK - Free Report) and Camping World Holdings Inc (CWH - Free Report) in the Zacks Leisure and Recreation Services industry, carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year. 

These 7 were selected because of their superior potential for immediate breakout. 

See these time-sensitive tickers now >>

Published in