Could AMC Entertainment’s Q2 Results Boost Its Stock?



Stock could rise

AMC Entertainment (AMC) stock could rise after the company announces its second-quarter results. Analysts expect its revenue to grow by 18.6% YoY (year-over-year) in Q2 and its adjusted EPS to rise YoY to $0.09 from -$1.35. Year-to-date, AMC Entertainment stock has risen 3%. Meanwhile, Cinemark Holdings (CNK) has fallen 0.7%, and the S&P 500 has risen 5%.

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Could the stock’s uptrend continue?

AMC Entertainment, along with Cinemark Holdings and Regal Entertainment, is one is one of the biggest movie theatre chains in the United States. This year is projected to be robust for movie theater stocks, given the impressive movie release line up. The first half of the year saw hits such as Black Panther, Avengers: Infinity War, Deadpool 2, Incredibles 2, and Jurassic Park: Fallen Kingdom. Recently released Ant-Man and the Wasp is also doing fairly well, with a worldwide collection of $354.6 million so far. The second half of the year is set to bring Mission: Impossible – Fallout, Venom, Fantastic Beasts: The Crimes of Grindelwald, Aquaman, and Bumblebee.

AMC Entertainment, which is adding recliners to its theaters, expects ~200 theaters to be recliner equipped by the end of this year. It also expects to install over 30 Dolby cinema screens and is focusing on Saudi Arabia, which is seeing major changes that could offer opportunities and has a relatively prosperous population.

It also introduced a new feature to its AMC Stubs loyalty program, AMC Stubs A-List, to compete with MoviePass. With AMC Stubs A-List, Stubs members can watch three movies per week at any AMC location for $19.95, excluding tax. Plus, members can keep all other AMC Stubs Premiere benefits. Unlike MoviePass members, Stubs A-List members can watch any movie across all formats, including Dolby 3D, IMAX, and BigD.


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