AMC Entertainment Holdings, Inc. AMC is scheduled to report results for the fourth quarter of 2023 on February 28, after the market closes. In the most recent reported quarter, the company’s earnings and revenue exceeded the Zacks Consensus Estimate by 55% and 8.6%, respectively.
AMC Entertainment’s earnings have notably beaten the consensus mark in each of the past four quarters, with the average surprise being 53%.
How are the ratings made?
The Zacks Consensus Estimate for the fourth quarter widened to a loss of 70 cents per share from 65 cents in the past seven days. In the year-ago quarter, the company posted a loss of $1.40.
The consensus estimate for revenue was pegged at $1.06 billion, implying growth of 7.4% from the $990.9 million figure reported a year ago.
Key factors to consider
AMC Entertainment is expected to experience revenue growth for the fourth quarter, driven by a strong increase in attendance. This surge is fueled by an expanding slate of high-quality movie titles from the company’s studio partners, effectively drawing audiences back to AMC theaters. Additionally, improved food and beverage offerings at concession stands and Dine-In theaters, along with expansion of theater locations in the United States, Europe and the Middle East, are expected to positively contribute to revenue growth.
For the fourth quarter, the Zacks Consensus Estimate for ticket, food & beverage, and other theater revenue was pegged at $592 million, $431 million, and $103 million, representing increases of 5.5%, 7.9%, and 17.3% year-over-year. year levels, respectively.
Meanwhile, the inflationary environment and increased operating costs and expenses are likely to have partly put pressure on AMC’s bottom line. Despite the ongoing challenges, however, notable growth in attendance and F&B revenue per visitor will likely partially offset these headwinds.
AMC Entertainment Holdings, Inc. Price and earnings per share Surprise
AMC Entertainment Holdings, Inc. price-eps-surprise | Quote from AMC Entertainment Holdings, Inc
What the Zacks Model Reveals
Our proven model predicts better earnings for AMC Entertainment this time around. The combination of a positive earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of earnings beat.
ESP Earnings: AMC has a gain ESP of +6.67%. You can discover the best stocks to buy or sell before they are reported with our ESP Earnings Filter.
Zacks Rank: AMC currently carries a Zacks Rank 3.
Other shares with a favorable combination
Here are some other Zacks Consumer Discretionary stocks for investors to consider, as our model shows they have the right mix of elements to beat estimates this time around.
Six Flags Entertainment Corporation SIX has an Earnings ESP of +21.85% and a Zacks Rank of 2 currently. You can see the full list of today’s Zacks #1 Rank stocks here.
SIX’s earnings for the upcoming quarter are expected to decline 15.6% from year-ago levels. It reported better-than-expected earnings in one of the past four quarters and missed in the other three, with the negative surprise averaging 9.3%.
Guess?, Inc. GES has an Earnings ESP of +4.25% and a Zacks Rank of 3 currently.
GES’ earnings for the upcoming quarter are expected to decline 10.9% from year-ago levels. It reported better-than-expected earnings in three of the last four quarters and missed in the remaining case, with an average surprise of 43.1%.
H World Group Limited HTHT has an Earnings ESP of +21.31% and a Zacks Rank of 2 currently.
HTHT’s earnings for the upcoming quarter are expected to increase by 616.7% from year-ago levels. It reported better-than-expected earnings in each of the last three quarters, with the average surprise being 94.4%.
Keep up with upcoming earnings announcements with the Zacks Earnings Calendar.
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