AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading lower Wednesday after the company reported preliminary results for the second quarter.
What Happened: AMC said it expects second-quarter revenue of approximately $1.03 billion versus estimates of $1.018 billion, according to estimates from Benzinga Pro.
The company anticipates a second-quarter loss of 10 cents per share versus estimates for a loss of 43 cents per share. Adjusted EBITDA is expected to be approximately $29.4 million in the second quarter.
AMC also said it expects to report a cash and cash equivalents balance of approximately $770.3 million as of June 30.
“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. This explains the weakness in our preliminary Q2 2024 results, as contrasted with the same quarter of a year ago,” said Adam Aron, chairman and CEO of AMC Entertainment.
“But if looking only at the full quarter, the lay observer might easily miss the incredibly good news that transpired within the second quarter. Finally, moviegoing in theatres appears again to be on an upwards trajectory. AMC enjoyed a significant increase in our daily revenues in June of 2024 as compared to those of April and May of 2024.”
AMC noted that the strong box office momentum has continued into July. The company expects box office momentum in the second half of 2024 and into 2025 and 2026 to show “Increasing strength.”
“This in turn suggests that AMC should enjoy increasing Adjusted EBITDA, if as and when overall industry revenues are climbing. Such improvements in revenues, earnings and Adjusted EBITDA are our current expectations going forward, all of which shine brightly on AMC’s future,” Aron added.
AMC scheduled its second-quarter financial results for Aug. 2. The company will hold a conference call after the market closes that day to discuss its quarterly results.
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AMC Price Action: AMC shares were halted for new pending ahead of the market open. The stock was down 5.12% at $4.82 at the time of publication, per Benzinga Pro.
Photo: Dave Dugdale from Flickr.
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