AMC earnings: Movie chain posts 'strongest quarterly results in two full years'

·Markets Reporter
·2 min read

AMC (AMC) Entertainment posted its "strongest quarterly results in two full years," the company reported in its fourth-quarter earnings release. AMC stock was little changed following the print. Investors had some idea of what to expect since the theater chain posted some of its preliminary numbers last month.

These are the results posted by the company, compared to consensus estimates, as compiled by Bloomberg data:

Adjusted (loss) per share: -11 cents vs -16 cents estimated

Total Revenue: $1.17 billion versus $1.16 billion expected

The company's consolidated attendance clocked in at 59.68 million guests, a massive increase from the 8.09 million moviegoers for the same period last year.

AMC highlighted a "robust and appealing film slate that culminated with the exclusive theatrical release of the now third-highest grossing movie of all-time, "Spiderman: No way home."

“AMC’s fourth quarter 2021 results represent our strongest quarter in two full years, with positive Adjusted EBITDA of almost $160 million, Operating Cash Generated of more than $220 million and finishing 2021 with a record year-ending liquidity position of more than $1.8 billion," Adam Aron, Chairman and CEO of AMC Entertainment said in the company's quarterly release.

"Our positive recovery glide path from the global pandemic continued in earnest in the fourth quarter. While not yet where we want to be, our progress is substantial and unmistakable," he added.

AMC was a retail trader favorite last year — and among Yahoo Finance’s top three most searched tickers in 2021.

It's been a volatile start of the year for so-called meme stocks like AMC and GameStop (GME). Shares of the theater chain gained more than 10% in February after a rough January. Year-to-date AMC is down more than 30%.

Aron has leaned into retail enthusiasm. The company has expanded into non-fungible tokens (NFTs). Last year it announced the creation of shareholder NFTs and revealed crypto payments offerings.

Adam Aron, Chairman of the Board and CEO, AMC Entertainment, speaks at the 2021 Milken Institute Global Conference in Beverly Hills, California, U.S., October 18, 2021. REUTERS/David Swanson
Adam Aron, Chairman of the Board and CEO, AMC Entertainment, speaks at the 2021 Milken Institute Global Conference in Beverly Hills, California, U.S., October 18, 2021. REUTERS/David Swanson

In early February AMC announced preliminary 4th quarter revenue of about $1.17 billion and adjusted EBITDA between $146.8 million and $151.8 million. Those preliminary figures beat Wall Street estimates. Shares rallied on the initial release.

“What was really impressive was the operating leverage. They had margins of 13%. On the third-quarter call, they said that EBITDA in this kind of scenario where revenues could be essentially what they were, would be break even,” said Macquarie analyst Chad Beynon following the preliminary release.

Beynon has an Underperform rating on the stock, and a $6 price target.

The stock has 3 Hold, and 5 Sell recommendations from Wall Street analysts, with an average price target of $6.34 per share.

Ines is a markets reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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