Earnings Expectations for AMC Entertainment in 1Q18



Analysts expect earnings per share to rise 28.6%

AMC Entertainment (AMC) is scheduled to report its 1Q18 (ended March 31) earnings on May 7. Analysts expect the company to report adjusted EPS (earnings per share) of $0.09, representing 28.6% growth from 1Q17.

The company’s bottom line is expected to benefit from increases in revenue and share buybacks. The company is cutting down on costs and expects to earn $100 million–$200 million from the sale of non-core assets in 2018. Analysts expect adjusted operating expenses to fall 6.3% to $1.2 billion in 1Q18, and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to fall 4.6% to $239.8 million.

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Past earnings performance

In 4Q17, the company reported adjusted EPS of $0.26, compared with analysts’ estimate of $0.27 and the company’s 4Q16 EPS of $0.33. AMC’s bottom line was impacted by rising operating expenses.

On a reported basis, its EPS were -$2.14, compared with $0.29 in 4Q16. AMC Entertainment recorded a net tax expense of $310 million related to tax reform and saw a 28.2% rise in its average share count.

In 2017, its adjusted EPS were -$1.38, representing a larger loss than analysts’ estimate of -$1.34 and the adjusted EPS of $1.17 reported in 2016. On a reported basis, its EPS were -$3.80, compared with $1.17 in 2016. Its bottom line was mainly impacted by tax reform expenses and pre-tax impairment charges.

Expectations for Cinemark

In 1Q18, analysts expect Cinemark Holdings (CNK) to report adjusted EPS of 0.60, down 11.8% from 1Q17. Revenue decline is likely to impact its bottom line.


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