What's in Store for AMC Entertainment's (AMC) Q3 Earnings?

AMC Entertainment Holdings, Inc. AMC is likely to register increase in both earnings and revenues when it reports third-quarter 2021 results. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 22%.

Q3 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for a loss per share has narrowed to 42 cents over the past seven days from 47 cents per share. In the prior-year quarter, the company had reported an adjusted loss per share of $5.70. The consensus mark for revenues is pegged at $768.6 million, compared with the prior-year reported figure of $119.5 million.

Factors to Note

The company’s third-quarter 2021 performance is likely to have benefited from a sharp increase in global attendance. The impact of the increasingly favorable environment for movie-going and accelerated vaccinations in the United States, Europe and the Middle East is expected to have aided the company’s performance in the quarter to be reported. The company has been witnessing massive pent-up demand for movies. The Zacks Consensus Estimate for Admissions revenues is pegged at $528 million, compared with $63 million reported in the prior-year quarter.

The company may have gained from an increase in average ticket pricing. During second-quarter 2021, average ticket pricing was up more than 15%, and food and beverage revenues per patron increased approximately 42%, compared with the second quarter of 2019.

AMC Entertainment has been undertaking comprehensive health and sanitation programs, including enhanced cleaning procedures and upgraded air filtration efforts to ensure maximum safety for guests. These efforts entail high costs, which are likely to have weighed on the second-quarter performance.

Monthly cash burns may have hurt the company’s to-be-reported quarter’s bottom line. During second-quarter 2021, cash burn was approximately $85 million per month. Quarterly cash rent payments are likely to have been higher in third-quarter 2021. The cash rent in the second half of 2021 is expected to be higher. The company has to pay some rent deferred from prior periods.

AMC Entertainment Holdings, Inc. Price and EPS Surprise

AMC Entertainment Holdings, Inc. price-eps-surprise | AMC Entertainment Holdings, Inc. Quote

What Our Model Says

Our proven model predicts an earnings beat for AMC Entertainment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: AMC Entertainment has an Earnings ESP of +6.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combination

Here are some other companies in the Zacks Consumer Discretionary sector, which according to our model, also have the right combination of elements to post an earnings beat.

Golden Entertainment, Inc. GDEN has a Zacks Rank #1 and an Earnings ESP of +51.95%.

Choice Hotels International, Inc. CHH has a Zacks Rank #2 and an Earnings ESP of +4.04%.

Accel Entertainment, Inc. ACEL has a Zacks Rank #2 and an Earnings ESP of +20.00%.

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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report

AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report

Golden Entertainment, Inc. (GDEN) : Free Stock Analysis Report

Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report

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