AMC Entertainment (NYSE:AMC) is set to report its anticipated Q4 earnings after the bell. As a result, chatter surrounding the meme stock on social media has risen as investors debate whether AMC stock is a viable investment. The movie-theater chain gave investors a sneak peek at results when it released preliminary earnings in February. Revenue came in at $1.17 billion, which was above consensus estimates of $1.09 billion. Furthermore, AMC shocked investors when it released its preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) figure. The company reported EBITDA to be between $146.8 million and $151.8 million, beating estimates of $82 million. Furthermore, the preliminary EBITDA reported would be the highest since 2019.
AMC Stock Earnings: Watch for Revenue and EPS
For Q4, analysts are still expecting revenue of $1.09 billion, with the low estimate at $898 million and the high at $1.17 billion. AMC’s revenue will largely be driven by movie-ticket and concession sales. However, the stock has a large social media following that is already likely aware of preliminary results. Accordingly, the conference call will be worth listening to for any further updates.
For earnings per share (EPS), analysts are expecting -26 cents. Profitability remains a concern for the centuries-old company as it works to recover from the coronavirus pandemic. Nonetheless, bullish shareholders of AMC stock point to the slowdown in daily coronavirus cases as a catalyst for future profitability and increased sales.
What’s Next For AMC?
In terms of Q1 guidance, analyst are expecting revenue of $940.45 million, which is lower than expected Q4 revenue. For Q1 EPS, the consensus estimate sits at -37 cents. However, there are a number of other catalysts coming up for AMC stock.
As InvestorPlace contributor Chris MacDonald noted, AMC will enable BitPay crypto online payments on March 19. By April 16, AMC’s mobile application will accept BitPay as well. BitPay allows users to pay AMC via popular cryptocurrencies like Bitcoin (BTC-USD) and Dogecoin (DOGE-USD).
Additionally, AMC will likely release updates on its non-fungible token (NFT) ventures. Most recently, the movie-theater chain offered its users the chance to claim a Batman NFT upon the purchase of a “The Batman” movie ticket.
Unfortunately, Wall Street isn’t the biggest fan of AMC. The stock carries an average price target of $10.45 among seven firms with coverage of the company. Based on current prices, the price target implies a downside of more than 40%.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
