Yahoo Finance AMC stock rises after quarterly results beat estimates
AMC Entertainment's (AMC) stock rose in after-hours after the cinema chain's quarterly results came in better than expected. These are the company's first quarter results compared to consensus estimates by Wall Street analysts.
Adjusted (loss) per share: -.52 versus -.62 estimated
Revenue : $785.7 million vs $769.88 million expected
"Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years. We continue on our pandemic recovery trajectory, more than quintupling revenues and improving adjusted EBITDA by nearly eighty percent compared to a year ago," CEO Adam Aron said in the company's quarterly release.
The company highlighted box-office hits, its NFT and crypto initiatives, and a $28 million stake in gold miner Hycroft Mining Holdings (HYMC), a move announced in March.
"Whether through leveraging our core competencies in theatrical exhibition or our experience in balance sheet management and capital raising, we will continue to take bold, decisive action to strengthen AMC for the future," said Aron.
It’s been a rough 2022 for the markets, let alone so-called "meme stocks." The Federal Reserve recently announced a 50 basis point rate hike and plans to implement quantitive tightening in order to fight inflation. The tighter monetary policy makes credit borrowing more expensive and syphons liquidity out of the system.
High inflation prints have prompted investors to sell shares of companies with large amounts of debt, little or no profits, and future earnings expectations.
AMC became a retail trade favorite last year during the "meme stock" phenomenon. The company has raised money through offerings as its share price soared in 2021 thanks to retail investors.
The stock has declined more than 70% from its 52 week high of $72 last year. Year-to-date, AMC is down roughly 50%.
The stock has 3 analyst Hold recommendations and 5 Sell ratings.
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