Key Takeaways
- AMC Entertainment (AMC) stock price decreased by 4.61% to $1.45 in the latest close session
- The company is expected to post an EPS of -$0.06, indicating a 66.67% growth compared to the equivalent quarter last year
- Revenue is anticipated to be $1.39 billion, indicating a 6.23% upward movement from the same quarter last year
- The Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.15 per share and revenue of $4.95 billion for the full year
- AMC Entertainment is currently a Zacks Rank #4 (Sell), with the Leisure and Recreation Services industry holding a Zacks Industry Rank of 75
Introduction to AMC Entertainment’s Stock Performance
AMC Entertainment (AMC) experienced a decline in its stock price, falling 4.61% to $1.45 in the latest close session. This decrease lagged behind the S&P 500’s 0.01% gain on the day, as well as the Dow’s 0.55% increase. The tech-heavy Nasdaq, however, lost 0.44%. Over the previous month, shares of the movie theater operator witnessed a significant loss of 31.22%, underperforming the Consumer Discretionary sector, which gained 0.47%, and the S&P 500, which gained 0.86%. This decline in stock price has likely raised concerns among investors, who are now eagerly awaiting the company’s upcoming earnings release.
Upcoming Earnings Release and Expectations
The upcoming earnings release of AMC Entertainment will be of great interest to investors, as it will provide insight into the company’s financial performance. According to predictions, the company is expected to post an EPS of -$0.06, indicating a 66.67% growth compared to the equivalent quarter last year. Additionally, revenue is anticipated to be $1.39 billion, indicating a 6.23% upward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.15 per share and revenue of $4.95 billion. These totals would mark changes of +10.16% and 0%, respectively, from last year. These expectations are crucial in determining the company’s future prospects and will likely have a significant impact on its stock price.
Analyst Estimate Revisions and Zacks Rank
Investors should also take note of any recent adjustments to analyst estimates for AMC Entertainment. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, the Zacks Rank system has been established, which considers these estimated changes and delivers an operational rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Currently, AMC Entertainment is a Zacks Rank #4 (Sell), indicating a bearish outlook.
Industry Performance and Zacks Industry Rank
The Leisure and Recreation Services industry, which AMC Entertainment is a part of, is currently holding a Zacks Industry Rank of 75, positioning it in the top 31% of all 250+ industries. The Zacks Industry Rank assesses the vigor of specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. This suggests that the Leisure and Recreation Services industry is performing relatively well, which could have a positive impact on AMC Entertainment’s stock price.
Conclusion and Future Outlook
In conclusion, AMC Entertainment’s stock price has experienced a significant decline, and the company’s upcoming earnings release will be closely watched by investors. The predicted EPS and revenue growth are positive indicators, but the current Zacks Rank #4 (Sell) suggests a bearish outlook. The Leisure and Recreation Services industry’s strong performance, as indicated by its Zacks Industry Rank of 75, could have a positive impact on the company’s stock price. Investors should continue to monitor the company’s performance and adjust their strategies accordingly. To stay up-to-date with the latest developments and recommendations, investors can utilize Zacks.com and download the 7 Best Stocks for the Next 30 Days report.