AMC Entertainment (AMC), the largest theater chain in the world, is scheduled to announce its results for the fourth quarter of 2024 after the market closes on February 25. AMC stock has declined about 25% over the past year due to massive debt, liquidity issues, and the impact of actors’ and writers’ strikes on Hollywood releases last year. Analysts expect AMC to report an adjusted loss per share of $0.18 for Q4 2024 compared to the loss per share of $0.54 in the prior-year quarter.
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Further, analysts project that AMC will deliver Q4 revenue of $1.29 billion, reflecting year-over-year growth of about 17%. The company’s Q4 top line is expected to gain from releases like Disney’s (DIS) Moana 2, Universal’s Wicked, and Paramount’s (PARA) Gladiator II. However, the Q4 2024 bottom line is expected to be hit by high interest expenses.
AMC stock, which has often been caught in a meme stock frenzy in recent years, has seen considerable shareholder dilution due to its equity offerings. The company is expected to witness a strong turnaround in 2025, backed by some major movie releases.
Analysts’ Sentiment Ahead of AMC’s Q4 Earnings
Earlier this month, Roth MKM analyst Eric Handler upgraded AMC Entertainment stock to Hold from Sell but slightly lowered the price target to $3.25 from $4. The five-star analyst cited an improving box office cycle and a stabilizing financial position as the reasons for the rating upgrade. Handler stated that the box office is entering a positive multi-year content cycle in 2025, with AMC’s cash flow expected to turn positive for the first time since 2019.
While concerns over elevated debt levels and ongoing cash burn continue to weigh on investor sentiment, the analyst noted that AMC has raised about $180 million from equity sales in Q1 2025, strengthening its liquidity. Meanwhile, Handler trimmed his Q4 2024 revenue and earnings estimates due to shifting audience trends and a weaker holiday slate compared to last year’s Taylor Swift: The Eras Tour boost.
Like Handler, Benchmark analyst Mike Hickey has a Hold consensus rating on AMC stock. He believes that AMC is positioned for a multi-year recovery, with 2025 likely to outperform 2024 based on a robust movie slate that includes Impossible 8, Jurassic World 4, and Avatar 3. The analyst highlighted AMC’s “GO Plan,” which allocates $1.0 billion to $1.5 billion over the next four to seven years towards strategic investments in premium large-format screens, expanded laser projection, and enhanced seating to boost the theatrical experience. Hickey also noted AMC’s efforts to diversify revenue streams, including expansion of the home popcorn business, and operational efficiencies to support long-term financial stability.
Options Traders Anticipate Major Move on AMC’s Q4 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about 12% move in either direction in reaction to AMC Entertainment’s Q4 2024 results.
Is AMC a Good Stock to Buy?
Given the ongoing challenges, Wall Street is sidelined on AMC Entertainment stock, with a Hold consensus rating based on four unanimous Hold recommendations. The average AMC stock price target of $3.63 implies about 6% upside potential.
