AMC Entertainment (NYE:AMC) is set to announce its Q4 2022 results on February 28 after the market closes. Analysts expect the theatrical exhibition company to report a loss of $0.20, compared to $0.16 in the same period last year. Meanwhile, revenue is estimated to decrease by 10.3% to $1.05 billion.
AMC Entertainment operates or owns theaters, mainly located in the US and Europe. The company is likely to have benefited from the surge in theatrical releases during the quarter. The major releases of Black Adam and Avatar: The Way of Water from Warner Bros. (NSD:WBD) and Walt Disney (NYE:DIS), respectively, might have also contributed to the company’s revenue.
However, despite an expected increase in audience turnout, volumes are still expected to be below pre-pandemic levels. Additionally, servicing the debt incurred during the pandemic might have affected the company’s profitability.
In recent news, AMC plans to raise considerable equity and convert its preferred shares into common stock, subject to approval in a special shareholders meeting scheduled for March 14. A preliminary injunction hearing is also set to take place on April 27, to block the conversion of AMC Preferred Equity units (NYE:APE) into common shares.
AMC’s CEO, Adam Aron, is optimistic about the company’s performance in 2023, with an expected 35% increase in movie releases compared to 2022. However, the company is still struggling with its debt burden.
Wall Street analysts have given AMC two Hold and one Sell recommendation, resulting in a Moderate Sell consensus rating. The average price target of $3.25 represents a downside potential of 57.3%. While AMC may see growth in 2023, high inflation and debt balance may continue to impact profitability. Additionally, the average price target implies a downside in the stock following its strong rally as a meme stock this year.
AMC Entertainment Inc. Stock Analysis:
Four Analysts Expect AMC Entertainment Holdings Inc to Reach Average Target Price of USD 8.67 in the Next 12 Months. Based on the stock forecasts from four analysts, the average analyst target price for AMC Entertainment Holdings Inc is USD 8.67 over the next 12 months. The company’s average analyst ratings is Buy, indicating a positive outlook. However, Stock Target Advisor’s stock analysis of AMC Entertainment Holdings Inc is Neutral, considering five positive signals and five negative signals.
As of the last market close, AMC Entertainment Holdings Inc’s stock price was USD 7.61. Despite a challenging year, the stock price has shown resilience with a significant increase of +45.23% over the past week and +38.11% over the past month. Nevertheless, the stock price is down by -56.91% over the last year.
AMC Entertainment Holdings, Inc. is a leading theatrical exhibition business that operates in the United States and Europe through its subsidiaries. The company is involved in the ownership, operation, and interests of approximately 950 theaters and 10,600 screens, making it one of the largest theater chains globally. Founded in 1920 and headquartered in Leawood, Kansas, AMC Entertainment Holdings, Inc. has a long-standing reputation for providing a superior cinematic experience to movie-goers. The company’s headquarters is located at One AMC Way, Leawood, KS, United States, 66211.