AMC Entertainment (NYSE:AMC) stock is a top-trending ticker and down 2% in morning trading today after the company reported stronger-than-expected first-quarter results.
AMC’s revenue soared 430% year over year to $786 million, well above analysts’ average estimate of $743.5 million. The movie theater owner’s per-share loss, excluding certain items, came in at 52 cents. This was also better than analysts’ average estimate of a loss per share of 67 cents.
AMC Stock in Focus Thanks to Strong Movies
Among the movies that helped AMC beat analysts’ estimates were The Batman, Scream and Uncharted. Largely as a result of those films’ popularity, attendance at theaters soared to 39,000 last quarter, versus just 6,800 during the same period in 2021.
Addressing the many retail investors who have purchased AMC stock, CEO Adam Aron yesterday said, “I see your frustrations with your perceptions of how the market works, or does not work.” While he said many investors reached out with positive sugestions, “some” messages include “hostility or … threats.”
The CEO told investors that the firm would take action to improve the performance 0f AMC stock “only when the timing is right.” In the company’s earnings press release, he stated that, given the recent popularity of several movies, there “should [be] no doubt about the enduring appeal of theatrical exhibition.”
In an April 26 column, InvestorPlace contributor David Moadel stated that, “Wall Street seems to be ignoring positive news catalysts for the company,” and advised investors to “hold on for a bumpy but potentially profitable ride.”
On the date of publication, Larry Ramer did not have (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.