Investors' Dilemma: Will AMC Rebound or Face Setbacks? Essential Info for Retail Investors.
AMC Entertainment's Q2 Earnings Outlook: Cautious Optimism Amid Industry Challenges
After a period of relative inactivity, AMC Entertainment, the movie theatre chain, is back in the spotlight. The company recently announced the successful closing of comprehensive refinancing transactions, allowing for the issuance of more shares and increasing the number of AMC shares outstanding from 263 million to 431 million as of March.
The upcoming second-quarter earnings report, scheduled for release on Friday, is causing a stir in the industry. Analysts are looking for a loss of $0.764 per share on revenue of just under $5 billion for AMC Entertainment's second-quarter earnings.
Despite the challenging landscape, there are signs of improvement for AMC. B. Riley has raised AMC's Q2 2025 EPS forecast from $0.01 to $0.08, although the full-year earnings estimate remains negative at around ($0.59) per share for 2025. Wedbush projects Q2 revenue near $1.35 billion with adjusted EBITDA around $160 million (12% margin), noting a 29% year-over-year increase in domestic attendance and a 5% rise in revenue per patron.
However, the overall film industry faces ongoing challenges. Box office attendance remains below pre-pandemic levels, and the number of blockbuster films drawing large theater audiences has diminished. Movies are increasingly being released directly to streaming platforms or have shorter theatrical windows. For example, the film Jurassic World: Rebirth is now offered to subscribers of Comcast's Universal's streaming service Peacock.
Industry forecasts suggest a slow recovery. PwC projects that domestic and global film revenues won't return to pre-COVID levels until around 2029, growing at under 4% annually until then. Meanwhile, competitors like Cinemark are seeing improvements in concession sales and attendance, contributing to record post-pandemic EBITDA figures.
In summary, AMC is expected to post stronger Q2 results with improved attendance and per-ticket revenue, supported by a growing slate of premium and filmed-for-IMAX titles that leverage its large IMAX and Dolby screen footprint. However, the industry's overall recovery is slow due to evolving consumer preferences toward streaming and fewer blockbuster theatrical releases, keeping box office sales below previous levels.
Long-term industry growth is forecasted to be modest through 2029, indicating sustained challenges for theater chains like AMC amid competition from streaming. The article cautions against investing in AMC Entertainment based on meme-driven arguments, suggesting that real investors should look for something that's likely or at least probable. Other meme stocks from that time include GameStop, BlackBerry, and Bed Bath & Beyond, with GameStop's shares remaining below their 2021 high and Bed Bath & Beyond declaring bankruptcy in early 2023.
As AMC Entertainment prepares to release its second-quarter earnings report, investors and industry analysts will be watching closely to see how the company navigates these challenges and positions itself for the future.
[1] Source: B. Riley Securities Q2 2025 EPS forecast for AMC Entertainment
[2] Source: PwC Global Entertainment & Media Outlook 2022-2026
[3] Source: Wedbush Securities Q2 2022 revenue and EBITDA estimates for AMC Entertainment
[4] Source: Cinemark's Q1 2022 EBITDA figures
- The upcoming Q2 earnings report for AMC Entertainment has caused a stir in the business world, with investors and analysts closely watching to see how the company manages finance and investing in the ever-changing stock-market landscape.
- AMC Entertainment might post stronger Q2 results thanks to improved movie attendance and per-ticket revenue, but the overall recovery of the film industry is slow due to growing consumer preferences for streaming services and fewer blockbuster theatrical releases.
- The industry growth for theater chains like AMC Entertainment is forecasted to be modest through 2029, indicating sustained challenges due to competition from both streaming and traditional competitors in the business sector.
