Theater company AMC Entertainment (NYSE: AMC) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.
AMC Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $1.60 billion, up 14.2% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is AMC Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AMC Entertainment’s revenue to grow 19.9% year on year, a reversal from the 3.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AMC Entertainment rarely misses Wall Street’s revenue estimates.
Looking at AMC Entertainment’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hilton Grand Vacations delivered year-on-year revenue growth of 50.8%, beating analysts’ expectations by 39.5%, and Hasbro reported revenues up 15%, topping estimates by 7.9%. Hilton Grand Vacations traded up 8.2% following the results while Hasbro was also up 15.7%.
Read our full analysis of Hilton Grand Vacations’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.7% on average over the last month. AMC Entertainment is up 14.7% during the same time and is heading into earnings with an average analyst price target of $3.37 (compared to the current share price of $3.20).
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