AMC Entertainment Books Lower-than-Expected Q3 Loss

AMC Entertainment Holdings (AMC) has reported a smaller-than-feared loss in the third quarter of 2021. Meanwhile, total revenues also beat analysts’ expectations. Despite this, shares of the largest U.S. movie theater company lost more than 4% in the extended trading session on Monday after closing 8% higher on the day.

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AMC incurred an adjusted loss of $0.44 per share, lower than the Street’s loss estimate of $0.53 per share. The company had reported a loss of $5.70 per share in the same quarter last year.

Total adjusted revenues generated during the quarter stood at $755.6 million against the consensus estimate of $717.05 million. (See AMC Entertainment stock charts on TipRanks)

The company entertained 40 million guests in the third quarter, compared to 6.5 million guests in the same quarter last year.

As of September 30, 2021, the company operated 596 domestic theatres, which represented 100% of its domestic theatres, and 351 international theatres, reflecting around 99% of its international theatres. Markedly, most of the company’s theatres were open in the third quarter.

CEO Comments

In response to third-quarter results, the CEO of AMC, Adam Aron, said, “For the first time since the fourth quarter of 2019, substantially all of our worldwide theatres were open for the entirety of a calendar quarter…Our quarter-ending liquidity as of September 30, 2021, of more than $1.8 billion, including cash and our undrawn revolving credit lines remains at near-record levels, and also gives us comfort…This strong liquidity position provides a foundation for us to innovate, as well as imaginatively grow and diversify our business. At the same time, our improving financial results and solid liquidity position are enabling us to take steps to reduce our financial leverage.”

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Wall Street’s Take

The rest of the Street is bearish on the stock with a Moderate Sell consensus rating based on 2 Holds and 2 Sells. The average AMC Entertainment price target of $11.75 implies 73.92% downside potential from current levels.

Investors’ Holdings

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on AMC Entertainment, with 5.1% of investors maintaining portfolios on TipRanks decreasing their exposure to AMC stock over the past 30 days.