AMC Entertainment Holdings Inc. reports third-quarter results after the market close Wednesday with summer blockbuster movies “Barbie” and “Oppenheimer” expected to feature prominently for the cinema chain and meme-stock darling. Last week, AMC’s stock
climbed after rival Cinemark Holdings Inc.’s
third-quarter top- and bottom-line beat, boosted by the hit movies, which sparked a cultural phenomenon dubbed “Barbenheimer.” Last month Imax Corp.
also reported third-quarter results that beat analysts’ top- and bottom-line estimates, fueled by the blockbusters.
Related: The ‘Barbenheimer’ buzz may be over, but consumer enthusiasm for movies is still strong, says Cinemark CEO AMC, Cinemark and Cineworld Group PLC’s Regal Cinemas all enjoyed a foot-traffic boost thanks to “Barbie” and “Oppenheimer,” according to analytics company Placer.ai. The data, released in July, showed an increase of around 75% in foot traffic at AMC. AMC enjoyed its best week ever based on admissions revenue from July 21 through July 27, the movie-theater chain said on July 31, setting a new company record for U.S. and global theaters. Some 65 U.S. locations also set single-week box-office records, including 13 locations in the greater Los Angeles market. The record revenue was driven primarily by the strong openings of “Barbie” and “Oppenheimer,” which both hit theaters July 21 and saw strong moviegoer demand throughout their first full week, according to AMC. “In addition to last weekend being the highest grossing AMC weekend in 4 years, the week of July 21-27 was the highest grossing for AMC in our entire 103-year history. The best in ONE HUNDRED AND THREE YEARS !!!” tweeted AMC CEO Adam Aron on July 31.
Related: AMC bonds see bullish activity while meme-stock darling rides the Taylor Swift wave Last month analyst firm Roth MKM said AMC is set to reap the benefits of better-than-expected box-office results. “Higher-than-projected box-office results are causing us to raise our 3Q estimates,” Roth MKM analyst Eric Handler wrote in a note. Roth MKM raised its AMC third-quarter revenue estimate to $1.304 billion from $1.209 billion, an increase of 35% on a year-over-year basis and down just 1% from the third quarter of 2019, before the COVID-19 pandemic. The analyst firm also raised AMC’s adjusted EBITBA estimate to $161 million from $116 million. Roth MKM has a sell rating for AMC. Of seven analysts surveyed by FactSet, four have hold ratings and three have sell ratings on AMC. It has been an eventful few months for AMC. Following a months-long court battle, the company’s stock underwent a 1-for-10 reverse split in late August, and AMC also completed the conversion of its AMC Preferred Equity units, or APEs, to common stock. Related: AMC’s debt-to-equity, late payments, could be ‘red flags,’ warns Creditsafe …