AMC Entertainment Holdings, Inc. AMC is scheduled to report fourth-quarter 2023 results on Feb 28, after market close. In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 55% and 8.6%, respectively.
AMC Entertainment’s earnings remarkably topped the consensus mark in each of the last four quarters, the average surprise being 53%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fourth quarter has widened to a loss of 70 cents per share from 65 cents over the past seven days. In the prior-year quarter, the company reported a loss of $1.40.
The consensus mark for revenues is pegged at $1.06 billion, suggesting growth of 7.4% from the year-ago reported figure of $990.9 million.
Key Factors to Consider
AMC Entertainment is expected to experience growth in fourth-quarter revenues, propelled by a strong increase in attendance. This surge is fueled by an expanding array of high-quality movie titles from the company’s studio partners, effectively drawing audiences back to AMC theaters. Additionally, enhanced food and beverage offerings at concession stands and Dine-In theaters, along with the expansion of theater locations across the United States, Europe and the Middle East, are anticipated to contribute positively to revenue growth.
For the fourth quarter, the Zacks Consensus Estimate for revenues from admissions, food and beverage, and other theater is pegged at $592 million, $431 million and $103 million, indicating an uptick of 5.5%, 7.9% and 17.3% from the year-ago levels, respectively.
Meanwhile, the inflationary environment and increased operating costs and expenses are likely to have partially put pressure on AMC’s bottom line. However, despite the ongoing challenges, notable growth in attendance and food and beverage revenues per patron is likely to partially offset these headwinds.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
AMC Entertainment Holdings, Inc. price-eps-surprise | AMC Entertainment Holdings, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat 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 an earnings beat.
Earnings ESP: AMC has an Earnings ESP of +6.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AMC currently carries a Zacks Rank of 3.
Other Stocks With Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination 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 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SIX’s earnings for the to-be-reported quarter are expected to decrease 15.6% from the prior-year levels. It reported better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, the negative surprise being 9.3%, on average.
Guess?, Inc. GES has an Earnings ESP of +4.25% and a Zacks Rank of 3 at present.
GES’s earnings for the to-be-reported quarter are expected to decrease 10.9% from the prior-year levels. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 43.1%.
H World Group Limited HTHT has an Earnings ESP of +21.31% and a Zacks Rank of 2 at present.
HTHT’s earnings for the to-be-reported quarter are expected to increase 616.7% from the prior-year levels. It reported better-than-expected earnings in each of the trailing three quarters, the average surprise being 94.4%.
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