AMC Entertainment Holdings Inc. shares plunged nearly 7% on Wednesday after the movie theater chain reported a wider-than-expected loss for the second quarter, citing the impact of fewer major movie releases due to last year's Hollywood strikes.
The company said it expects to report a net loss of $32.8 million for the second quarter, compared to a profit of $8.6 million a year earlier. Revenue for the quarter came in at $1.03 billion, slightly above analysts' estimates of $1.03 billion.
AMC's CEO Adam Aron acknowledged the challenges faced by the company due to the strikes, but expressed optimism about the upcoming movie slate, saying "better times are ahead." The company recently enjoyed a busy July 4 weekend, boosted by the release of "Despicable Me 4" and the continued success of Pixar's "Inside Out 2."
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