AMC Entertainment (AMC) Reports Q2: Everything You Need To Know Ahead Of Earnings

What’s Happening and When

Theater company AMC Entertainment (listed on the stock market as NYSE: AMC) will be reporting its money results this Monday before the bell (that means before the stock market opens for the day). Here’s what to expect.

How Did AMC Do Last Time?

• AMC Entertainment beat the guesses that money experts (called analysts) made about how much money it would bring in last quarter.
• It reported revenues (total money earned) of $1.05 billion.
• That was up 21.2% compared to the same time last year.
• It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates (EBITDA is a way to measure how much profit a company makes from its main business, before counting some costs like interest and taxes).

Important: AMC did better than expected last quarter and made a lot more money than the year before.

Should You Buy or Sell AMC Before Earnings?

Is AMC Entertainment a buy or sell going into earnings? You can read our full analysis here, it’s free for active Edge members.

What Does the Market Expect This Quarter?

This quarter, the market is expecting AMC Entertainment’s revenue to grow 5.1% year on year (compared to the same quarter last year). That is slowing down from the 35.6% increase it recorded in the same quarter last year.

• The picture below shows AMC Entertainment Total Revenue so you can see the trend:

Are the Experts Changing Their Minds?

• Analysts covering the company have generally reconfirmed their estimates over the last 30 days.
• This suggests they anticipate the business will stay the course heading into earnings.
• AMC Entertainment rarely misses Wall Street’s revenue estimates (Wall Street is a nickname for the US stock market and the people who work in it).

Important: AMC usually hits the money targets experts set, and experts haven’t changed their guesses lately.

What About Other Similar Companies?

Looking at AMC Entertainment’s peers (similar companies) in the consumer discretionary segment (businesses selling fun or non-essential stuff), some have already reported their Q2 results:

• Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%.
• Nike reported a revenue decline of 1.1%, but still topped estimates by 1.1%.
• After their results:
  • Delta traded down 3.2% (its stock price dropped).
  • Nike was up 4.9% (its stock price rose).

You can read our full analysis of Delta’s results here and Nike’s results here.

How Are Stocks Doing Lately?

• There has been positive sentiment (good feelings) among investors in the consumer discretionary segment, with share prices up 2.7% on average over the last month.
• AMC Entertainment is down 29.4% during the same time.
• AMC is heading into earnings with an average analyst price target of $2.24 (the price experts think it should be worth), compared to the current share price of $1.95 (what it costs to buy one share right now).

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Summary

AMC Entertainment will share its Q2 earnings this Monday before the market opens. Last quarter it beat expectations with $1.05B revenue, up 21.2% from a year ago. This quarter, experts expect slower growth of 5.1%. AMC rarely misses revenue guesses and analysts haven’t changed estimates lately. Other similar companies like Delta and Nike already reported mixed results. While most consumer discretionary stocks rose lately, AMC fell 29.4%, yet its target price is $2.24 vs current $1.95. Also, a separate AI stock tip was shared for curious readers.

FAQ

1. What does "reporting results before the bell" mean?

It means AMC will share its earnings report before the stock market officially opens for trading that day.

2. What is "revenue"?

Revenue is the total amount of money a company earns from its business, like ticket sales for AMC.

3. What is "year on year" growth?

It means comparing how much money a company made now versus the exact same period last year.

4. Why is AMC’s expected growth slower this quarter?

The market expects only 5.1% growth this quarter, down from 35.6% a year ago, meaning the big jump from last year isn’t repeating.

5. What is an analyst price target?

It’s the average price that money experts think a stock should be worth, which for AMC is $2.24 right now.