AMC Entertainment (AMC) Q3 Earnings: A Beat In The Cards?
Zacks Investment Research | Nov 03, 2016 06:55AM ET
Leisure and recreation services company, AMC Entertainment Holdings, Inc. (NYSE:AMC) , is slated to report third-quarter 2016 results on Nov 7, after market close.
Last quarter, the company posted a negative earnings surprise of 17.24%. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in two of the previous four quarters, with an average miss of 2.65%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that AMC Entertainment is likely to beat estimates because it has the right combination of two key elements.
Zacks ESP: AMC Entertainment has an the complete list of today’s Zacks #1 Rank stocks here .
What is Driving the Better-than-Expected Earnings?
AMC Entertainment operates as a theatrical exhibition company primarily in the U.S. and also internationally. It owns or has interests in theatres and screens worldwide. The company actively invests in renovation and refurbishing of multiplexes through enhancements like reclining seats, improved food and beverages, dine-in theaters and advanced sound and digital equipment.
AMC Theatres and Dolby Laboratories Inc. (NYSE:DLB) announced their strategic tie-up to expand the presence of Dolby Cinema to 100 at AMC operational sites by the end of 2017. The original agreement, signed in 2015, was for 100 auditoriums over a 10-year deployment. Moreover, AMC and Dolby are collaborating on expansion plans to increase the number of Dolby Cinema theaters at AMC locations beyond the initial 100. Currently, 22 Dolby Cinemas are operating at AMC locations all around U.S.
Meanwhile, being part of the entertainment industry exposes the company to macro-economic fluctuations.
AMC ENTERTAINMT Price and EPS Surprise
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