Yahoo Finance Weak Box Office to Dampen AMC Entertainment (AMC) Q1 Earnings
AMC Entertainment Holdings, Inc. AMC is scheduled to report first-quarter 2024 results on May 8, after market close. In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 22.9%.
AMC Entertainment’s earnings remarkably topped the consensus mark in each of the last four quarters, the average surprise being 50.4%.
How are Estimates Placed?
The Zacks Consensus Estimate has widened to a loss of 62 cents per share from a loss of 60 cents over the past 7 days. In the prior-year quarter, the company incurred a loss of $1.30.
The consensus mark for revenues is pegged at $951.4 million, suggesting a decline of 0.3% from the year-ago reported figure of $954.4 million.
Key Factors to Consider
AMC Entertainment’s quarterly revenues are likely to have been hurt by weakness in the box-office performance. Fluctuations in consumer behavior, macroeconomic conditions and the release schedule of major films are likely to have negatively impacted its top line in the quarter under review.
The Zacks Consensus Estimate for revenues from admissions, food and beverage, and other theater is pegged at $506 million, $312 million and $83 million, indicating a decline of 5.2%, 5.2% and 9.8% from the prior-year levels, respectively.
However, enhanced food and beverage offerings at concession stands and Dine-In theaters, along with the expansion of theater locations across the U.S., Europe and the Middle East are anticipated to have aided the top line.
Meanwhile, rising interest rates and inflationary pressures are expected to have emerged as significant concerns, leading to increased costs across various aspects of the business. In particular, inflationary wage and cost pressures are anticipated to have exerted additional strain on AMC's operational expenses, potentially squeezing profit margins.
Despite these challenges, the company remains focused on navigating these obstacles and maintaining a resilient position in the market.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
AMC Entertainment Holdings, Inc. price-eps-surprise | AMC Entertainment Holdings, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for AMC Entertainment this time around. It does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: AMC has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AMC currently carries a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Central Garden & Pet Company CENT currently has an Earnings ESP of +4.32% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CENT’s earnings for the to-be-reported quarter are suggested to increase 15.3%. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 37.8%.
Funko, Inc. FNKO currently has an Earnings ESP of +6.90% and a Zacks Rank of 2.
FNKO’s earnings for the to-be-reported quarter are projected to improve 40.8%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 42.8%.
Fox Corporation FOXA has an Earnings ESP of +8.73% and a Zacks Rank of 3.
FOXA is expected to register a 23.4% rise in earnings for the to-be-reported quarter. It reported better-than-anticipated earnings in each of the trailing four quarters, the average surprise being 71.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Central Garden & Pet Company (CENT) : Free Stock Analysis Report
Fox Corporation (FOXA) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Funko, Inc. (FNKO) : Free Stock Analysis Report
