AMC Earnings Beat As CEO Hails ‘Transformational’ Quarter For Meme Stock Investor’s Business Daily


AMC Entertainment (AMC) reported better-than-expected Q2 results after the close Monday, as its CEO hailed a “transformational” quarter of capital raises. Revenue remains far below pre-pandemic levels. AMC stock rose in late trading.

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Estimates: AMC was seen reporting a loss of 94 cents per share vs. a loss of $5.38 in the year-ago quarter, when movie theaters were largely closed during the pandemic. But that’s well off the EPS of 17 cents from Q2 2019. Sales are seeing hitting $382 million up from $18.9 million a year earlier but down from $1.5 billion in Q2 2019.

Results: AMC lost 71 cents a share. AMC revenue came in at $444.7 million, up 2,253% vs. a year earlier.

Stock: AMC stock rose 4.6% in extended trade. Shares closed up 3.4% to 33.80 in Monday’s stock market trading. AMC stock is well below its 50-day line after soaring in late May to a record 72.62 on June 2. That move began a few weeks following Q1 earnings results.

Chairman and CEO Adam Aron hailed a “transformational quarter,” in which the movie chain sold $1.25 billion worth of shares with AMC stock so rich valued, boosting liquidity above $2 billion. “We believe this gives AMC financial staying power to navigate boldly amidst coronavirus waters.”

AMC became a “meme stock” following a short-squeeze started by the Reddit group r/wallstreetbets earlier this year. But despite the squeeze, AMC stock still attracts short sellers.

AMC Stock Faces Covid-19, Streaming Pressure

Moviegoers returned to the cinemas over the spring as Covid-19 vaccinated rates rose and Americans looked to a semi-normal summer. But the rise of the delta variant of the coronavirus could pose another short-term resistance headwind for the stock and some cities institute indoor mask mandates and many potential moviegoers stay home.

The coronavirus has also shifted the way people work, learn, exercise and consume entertainment. Studios are now releasing movies on streaming services such as Disney+ at the same time as their theatrical premieres. The cost for a family of four paying a premium for the movie on top of their streaming fee is far less than going to the theater.

But actors are pushing back on streaming debuts.

Scarlett Johansson, the star of Marvel’s “Black Widow” filed a lawsuit against Disney (DIS) for breach of contract when the latest superhero installment was released on Disney+ at the same time as it made its theatrical debut. Johansson said her salary was based on the box office success of the movie.

Disney will report Q3 results Thursday. Disney stock dipped 0.2% to 176.72.

Follow Gillian Rich on Twitter for investing news and more

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