Shares of AMC fall as movie-theater chain cites 'weakness' in its Q2 guidance

Dow Jones07-24

MW Shares of AMC fall as movie-theater chain cites 'weakness' in its Q2 guidance

Shares of AMC Entertainment Holdings Inc. $(AMC)$ are down 4.7% Wednesday after the movie-theater chain and original meme stock cited the lingering impact of the Hollywood actors and writers strikes in its second-quarter guidance. AMC expects a second-quarter net loss of $32.8 million, or 10 cents a share, after net earnings of $8.6 million, or 6 cents a share, in the prior year's quarter. Analysts surveyed by FactSet are looking for a loss of 47 cents a share. The company expects second-quarter revenue of $1.03 billion compared to $1.35 billion in the same period last year. Analysts surveyed by FactSet are looking for revenue of $1.03 billion. "As we accurately predicted and previously disclosed, the prolonged actors and writers strikes of 2023 severely reduced the number of movies being released theatrically in the early months of 2024," said AMC CEO Adam Aron, in a statement. "This explains the weakness in our preliminary Q2 2024 results, as contrasted with the same quarter of a year ago." However, the CEO also pointed to "incredibly good news" during the second quarter. "AMC enjoyed a significant increase in our daily revenues in June of 2024 as compared to those of April and May of 2024," he added. "Indeed, the industry box office for June was only 1.4% less than that of April and May combined." AMC will report its second-quarter results after market close on Aug. 2.

-James Rogers

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July 24, 2024 10:55 ET (14:55 GMT)

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Shares of AMC fall as movie-theater chain cites 'weakness' in its Q2 guidance

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