AMC Entertainment Holdings Co., Ltd. (AMC – Free Report) is scheduled to report its first quarter 2024 results on May 8, after the market closes. In the last reported quarter, the company's revenue surpassed the Zacks Consensus Estimate by 22.9%.
AMC Entertainment's earnings significantly beat the consensus mark in each of the past four quarters, with an average surprise of 50.4%.
How are estimates made?
The Zacks Consensus Estimate has widened from a loss of 60 cents per share to a loss of 62 cents over the past seven days. In the same period last year, the company suffered a loss of $1.30.
The consensus mark for revenue is set at $951.4 million, suggesting a 0.3% decrease from the year-ago reported figure of $954.4 million.
Important factors to consider
AMC Entertainment's quarterly earnings were likely hurt by weak box office results. Changes in consumer behavior, macroeconomic conditions and major motion picture release schedules may have adversely affected sales in the quarter.
The Zacks Consensus Estimates for revenue from admission, food and beverage, and other theater revenue are $506 million, $312 million, and $83 million, representing 5.2%, 5.2%, and 9.8%, respectively, from prior-year levels. You can see that the % has decreased.
However, enhanced food and beverage offerings at concession stands and dine-in theaters, as well as expansion of theater footprint in the U.S., Europe and the Middle East, are expected to support sales.
Meanwhile, rising interest rates and inflationary pressures are expected to emerge as significant concerns, leading to increased costs across various aspects of business. In particular, we expect wage and cost inflationary pressures to further strain AMC's operating expenses and potentially pressure margins.
Despite these challenges, the company remains focused on overcoming these obstacles and maintaining a resilient position in the market.
What the Zacks Model Reveals
Our proven model is not a definitive predictor of AMC Entertainment's expected earnings this time. It doesn't have the right combination of two key factors to increase the odds of an earnings beat: a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold).
Revenue ESP: AMC's Earnings ESP is 0.00%. Use the Earnings ESP filter to find the best stocks to buy or sell before they're reported.
Zacks Rank: AMC currently has a Zacks Rank of 3.
Stock price expected to exceed profit forecasts
Here are some stocks in the Zacks Consumer Discretionary Space that investors can consider. Our model shows that these stocks have the right combination of factors to achieve higher returns than this season.
Central Garden & Pet Company (cent – Free Report) Currently has an Earnings ESP of +4.32% and a Zacks Rank of 2. See the complete list of today's Zacks #1 Rank stocks here.
CENT's upcoming reported quarter earnings are implied to increase by 15.3%. The company reported better-than-expected earnings in each of the subsequent four quarters, with an average surprise rate of 37.8%.
Funko Co., Ltd. (FNKO – Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank of 2.
FNKO's earnings for the upcoming reported quarter are expected to improve by 40.8%. After that, he reported better-than-expected earnings in three of his four quarters, including one that beat expectations. The mean unexpectedness was 42.8%.
Fox Co., Ltd. (foxa – Free Report) has an Earnings ESP of +8.73% and a Zacks Rank #3.
FOXA is expected to post earnings growth of 23.4% in the upcoming reported quarter. He subsequently reported better-than-expected earnings in each of the four quarters, with an average surprise rate of 71.1%.
Stay up to date on upcoming earnings releases with the Zacks Earnings Calendar.
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