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AMC Entertainment (NYSE:AMC) shares fell a further 9% Wednesday, adding to its decline so far this year after it posted earnings after the close Tuesday, reporting a wider-than-expected loss.
The movie theater business reported a loss of $0.20per share, $0.06 worse than the analyst estimate of a loss of $0.14, while revenue for the quarter came in at $968.4 billion versus the consensus estimate of $1.03B.
The company said its third-quarter results were impacted by a soft industry-wide box office in the latter two-thirds of the 2022 third quarter.
However, they were encouraged by the overall per-patron metrics for admissions revenue and food and beverage spending, which remained above pre-pandemic levels, growing 12% and 30%, respectively, compared to the third quarter of 2019.
“Our recovery continues, and we look forward with enthusiasm to a return to a more robust film slate in the fourth quarter of 2022, which has already started strong with the release of BLACK ADAM,” said Adam Aron, Chairman and CEO of AMC Entertainment.
Following the earnings release, Citi analysts told investors in a note on Tuesday evening that AMC “reported 3Q22 revenue of $968 million, which was below Citi and the Street.
“3Q22 Adjusted EBITDA of ($13) million fell short of Citi and was below consensus. Given the small miss, we would expect a modest decline in the shares tomorrow,” they added.
