What's In Store For AMC Entertainment (AMC) In Q4 Earnings?
Zacks Investment Research | Feb 27, 2018 09:10PM ET
AMC Entertainment Holdings (NYSE:AMC) is slated to report fourth-quarter 2017 results on Mar 1, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $1.4 billion, reflecting year-over-year growth of 51.3%. The consensus estimate for earnings is pegged at 27 cents per share, indicating year-over-year decline of 27%.
The company has a positive earnings surprise history. Earnings outpaced the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 120.2%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence Q4 Earnings
AMC Entertainment is one of the largest theatrical exhibition companies in the United States, Europe and globally with approximately 1,000 theaters and 11,000 screens. The company successfully operates theaters in 15 European countries and is the market leader in 22 of the 25 largest metropolitan areas in the United States, including the top three markets (New York, Los Angeles and Chicago). The company is also an industry leader in innovation and operational excellence.
Further, AMC Entertainment has been actively involved in the renovation and refurbishing of multiplexes through enhancements like reclining seats, improved food and beverages, dine-in theaters as well as advanced sound and digital equipment.
Completion of the $130-million sale-leaseback transaction of 7 U.S. theatres should help the company in enhancing overall liquidity position, funding the buyback of AMC shares, paying its debt and fueling growth through deployment of strategic initiatives.
AMC Entertainment’s initiative to identify approximately $400-million non-strategic assets and monetize them strategically and systematically looks impressive. The company sold 12 million shares of National CineMedia’s (NASDAQ:NCMI) common stock to Standard General, L.P. for approximately $73.1 million. AMC Entertainment also sold 2.8 million shares of National CineMedia’s common stock to an undisclosed American buyer for approximately $18.2 million.
We also appreciate the company’s efforts to offer a quarterly cash dividend of 20 cents on shares of Class A and Class B common stock for the quarter ended Sep 30, 2017. The dividend was paid in cash on Dec 18, 2017, to shareholders of record as of Dec 4, 2017. It marks the company’s fifteenth consecutive dividend payout since its initial public offering.
Backed by these tailwinds, AMC Entertainment performed pretty well in the past six months. Shares of AMC Entertainment have soared 20.9%, outperforming the Original post
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