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Will Earnings Help AMC Stock Squeeze Higher?

  • AMC (AMC) will report earnings after the market close.
  • The consensus analyst estimate for revenue is $1.18 billion.
  • Shares of AMC stock are down about 30% year-to-date.
AMC stock - Will Earnings Help AMC Stock Squeeze Higher?

Source: JJava Designs / Shutterstock

AMC (NYSE:AMC) is in full focus, as the company will report second-quarter earnings after the market close today. Zacks reports that a “sharp increase” in global attendance and ticket pricing should help buoy the movie theater company’s revenue. In addition, AMC previously stated that its selection of films this year would be significantly stronger than 2021.

In addition, AMC stock currently has a short interest as a percentage of float of 18.65%. In other words, 96.16 million shares are sold short, which would take 2.3 days to fully cover. The dollar volume of the shares sold short totals $1.48 billion. However, shares sold short have declined by 5.2% since June 30.

The shares sold short are significant. In the event of a positive earnings release, AMC stock could take off higher from shorts capitulating. So, what are the expectations for today’s earnings?

AMC Stock: AMC to Report Earnings After the Bell

The consensus analyst estimate for Q2 revenue is $1.18 billion, with the low and high estimates at $1.08 billion and $1.28 billion. Over the past two years, AMC has beaten revenue estimates 88% of the time. Meanwhile, earnings per share is expected to come in at a loss of 19 cents. The low EPS estimate is a loss of 33 cents, while the high is a loss of nine cents. Throughout the past two years, AMC has beaten EPS estimates 63% of the time. Over the past three months, EPS estimates have experienced two upwards revisions and three downwards revisions.

For the company’s third-quarter guidance, analysts are expecting an EPS loss of 21 cents on top of revenue of $1.09 billion. For the full year, analysts are expecting an EPS loss of $1.14 and revenue of $4.36 billion. AMC currently carries an average price target of $9.09 among seven firms with coverage of the stock.

AMC is currently in the process of enacting “comprehensive health and sanitation programs.” These programs include improved air filtration and cleaning procedures. This will likely affect earnings through increased expenses.

On the other hand, the company announced in July that it had repurchased $72.5 million of debt for roughly $50 million. As a result, AMC’s annual interest expense was lowered by $7.25 million. During Q1, debt was lowered by $135 million. Still, AMC carries $5.5 billion of debt that was acquired during the pandemic to escape a potential bankruptcy.

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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/will-earnings-help-amc-stock-squeeze-higher/.

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