What To Expect From AMC Entertainment's (AMC) Q4 Earnings

Theater company AMC Entertainment (NYSE:AMC) will be announcing earnings results this Tuesday afternoon. Here’s what to expect.

AMC Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $1.3 billion, down 3.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates.

Is AMC Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting AMC Entertainment’s revenue to decline 2.3% year on year, a reversal from the 18.3% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMC Entertainment rarely misses Wall Street’s revenue estimates.

Looking at AMC Entertainment’s peers in the consumer discretionary - leisure facilities segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Sphere Entertainment delivered year-on-year revenue growth of 27.9%, beating analysts’ expectations by 4.4%, and Live Nation reported revenues up 11.1%, topping estimates by 3.5%. Sphere Entertainment traded up 22% following the results while Live Nation was also up 3.3%.

Read our full analysis of Sphere Entertainment’s results here and Live Nation’s results here.

Investors in the consumer discretionary - leisure facilities segment have had steady hands going into earnings, with share prices flat over the last month. AMC Entertainment is down 18.8% during the same time and is heading into earnings with an average analyst price target of $2.01 (compared to the current share price of $1.21).

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