Friday, February 23, 2024
Dividend Stocks

AMC Stock Fans Should Mark Their Calendars for Feb. 28

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AMC Entertainment (NYSE:AMC) isn’t exactly having a good year. Shares of the company have fallen by over 30% thus far, led by a weak early 2024 box office. Earlier this week, AMC stock reached a new all-time and 52-week low of $3.58. However, it is having a good day and is up about 12% this afternoon.

Moreover, a major catalyst is just around the corner. The movie theater chain has confirmed that it will report its fourth quarter and 2023 full-year earnings on Feb. 28 after the market close.

On that day, AMC will also hold a webcast and answer questions from Wall Street analysts and AMC Investor Connect members. AMC currently carries an average price target of $6.42 among five analysts with coverage of the stock.

AMC Stock: AMC to Report Earnings on Feb. 28

During the third quarter, AMC reported revenue of $1.406 billion and was profitable with a GAAP EPS of 8 cents. However, for the fourth quarter, revenue is expected to fall by 26.47% quarter-over-quarter (QOQ) while rising 4.33% year-over-year (YOY) to $1.034 billion. Furthermore, analysts expect AMC to revert back to unprofitability with a GAAP EPS loss of 64 cents. That doesn’t bode well for the company unless it can beat those estimates.

If these estimates hold true, AMC’s 2023 full-year revenue is expected to be $4.742 billion, up by 21.24%, while its GAAP EPS is expected to be a loss of $2.18 compared to a loss of $8.21 a year ago. AMC’s expected 2023 revenue growth is strong but still pales in comparison to the $5 billion-plus of revenue it reported each year in 2017, 2018 and 2019. 2018 marked AMC’s last profitable year.

Just as important as earnings is guidance. For the first quarter of 2024, analysts expect AMC’s revenue to fall by 5.89% YOY to $898 million with a GAAP EPS loss of 83 cents. Revenue is expected to increase to $1.256 billion during the second quarter before falling lower during the third and fourth quarters.

For the full year of 2024, analysts expect revenue of $4.552 billion, down by 4.01% YOY, and a GAAP EPS loss of $1.81.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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