AMC Entertainment set to bounce back from upbeat first quarter results

  • NYSE: AMC rebounded 2.56% after hours on Monday on first-quarter earnings.
  • AMC’s stock has a consensus sell price ahead of its earnings call.
  • Doctor Strange 2 is already posting massive numbers at the box office.

Update: AMC Entertainment (NYSE: AMC) saw new signs of life in Monday’s post-trade trading after the company released its first-quarter earnings report, which beat market expectations. Shares of the movie theater chain rose more than 3.56% after hours on Monday after reporting a net loss of $337.4 million compared to a loss of $567.2 million it a year ago. Revenue rose to $785.7 million from $148.3 million last year and topped the $743 million expected by analysts, according to CNBC News. The post-trade bounce helped AMC’s stock price reverse its 9.01% loss in Monday’s trade, pointing to a positive Tuesday open. AMC shares hit their lowest level since May 2021 amid earnings-before-earnings anxiety.

NYSE: AMC saw a significant decline during Friday’s session in the final session before releasing its first quarter results on Monday. AMC shares fell 6.33% and ended the trading week at $13.76. The closing price marked the first time AMC closed a session below $14.00 since May 2021. All three major averages continued to decline on Friday, although the damage was nowhere near as severe as the selloff during of Thursday’s session. The Dow Jones closed its sixth consecutive week of losses, while the NASDAQ fell for its fifth consecutive week for the first time since 2012.

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According to the Marketbeat website, AMC has an analyst consensus sell rating with a 12-month median price target of $9.83. This means that even though the stock has fallen 48% so far this year, Wall Street analysts believe it still has a lot to fall. So far, the earnings season has been difficult for companies. With the rise in interest rates, companies have been penalized even though their profits are better than expected. Early consensus estimates put AMC’s first-quarter revenue at $736 million, which is a nice year-over-year increase but a sequential decline from last quarter.

AMC Stock Forecast

So far, Doctor Strange 2 has generated big revenues in domestic and foreign cinemas. Thursday’s early release has already grossed $36 million, while international box offices have grossed over $86 million. The latest film in the Marvel Comic Universe is on track to earn over $175 million this weekend.

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Karen J. Nelson