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AMC Entertainment (AMC) shares are up after business hours after the movie company beat both upper and lower results for its second quarter.
AMC reported a loss per share of 71 cents, compared to Wall Street estimates of a loss of 94 cents per share.
Revenue climbed to $ 444 million for the quarter from expectations of $ 382.25 million. The company’s second-quarter performance is a massive increase from the same period last year, when it generated $ 19 million in revenue. However, revenue remains well below the company’s total revenue of $ 1.5 billion in the second quarter of 2019.
AMC shares have risen more than 1,500% year-to-date since becoming EA Reddit’s favorite among Wall Street Bets retail traders. That’s when it turned into a “meme-stock”, with GameStop (GME), experiencing bouts of volatility since the start of the year.
The company benefited from soaring stock prices and raising capital.
“The second quarter of 2021 has been a transformation for AMC,” said Adam Aron, president and CEO of AMC in a statement.
“We raised another $ 1.25 billion in new equity (before commissions and fees) during the quarter, bringing our cash at the end of the quarter to over $ 2 billion (including cash and lines of credit). unused revolving credit), which is about double the previous record of this type, mark in AMC’s 101-year history, ”he continued.
Theaters have welcomed moviegoers within social distancing guidelines, but the impact of the Delta Covid-19 variant on the business is unclear. A relapse or more stringent measures could hamper the industry’s slow recovery.
“On basic fundamentals, we are clearly seeing a decline in demand for films coming out,” Chad Beynon, senior analyst at Macquarie Group, told Yahoo Finance Live.
Beynon said he was monitoring cash flow as other movie companies spent less money, if any money.
The company capitalized on the meme market frenzy, selling shares along the way. This money could be used for acquisitions and business growth.
“Given our scale, experience and commitment to innovation and excellence, AMC is presented with very attractive theater acquisition opportunities,” said CEO Adam Aron in a filing business earlier this year.
The stock is down from its all-time high of $ 72.62 earlier this year. But it is still trading much higher than Wall Street estimates. AMC does not have an analyst buy recommendation. It has 5 Hold and 4 Sell notes, with an average target price of $ 5.87. On Monday, it was trading at around $ 33 a share before posting earnings.
Ines is a markets reporter covering stocks on the New York Stock Exchange floor. Follow her on Twitter at @ines_ferre
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