Why AMC Stock Is Heating Up Ahead of Earnings

  • AMC Entertainment (AMC) will exclusively launch a new line of popcorn products with Walmart (WMT).
  • The movie-theater chain will also report its fourth-quarter earnings after the market close today.
  • AMC stock is up about 90% year-to-date (YTD).
Image of the entrance of an AMC Entertainment (AMC) branded theater.
Source: Helen89 / Shutterstock.com

All eyes are on AMC Entertainment (NYSE:AMC) right now, as the movie-theater chain will report its fourth quarter and 2022 full-year results after the market close today. On top of that, AMC also just made an announcement this morning concerning a collaboration with Walmart (NYSE:WMT), the largest retail store by revenue in the United States.

Walmart will exclusively launch AMC’s new line of microwave and ready-to-eat popcorn products, with six products in total. Three of these products will be varieties microwave-ready popcorn while the other three will be popped popcorn. The three microwave-ready popcorn products will retail for $4.98 for a six-count box. Meanwhile, the popped popcorn will retail for $3.98 for a 4.2 ounce to 5.2 ounce bag.

AMC’s ready-to-eat popcorn will be available at hundreds of Walmart stores on March 11, just in time for the Academy Awards the following day. In the next few weeks, the popcorn will be available at over 2,600 Walmart locations as well as through the retailer’s e-commerce website.

AMC CEO Adam Aron had the following to say about the news:

“With the launch of AMC Theatres new line of microwave and ready-to-eat popcorn, AMC yet again makes good on a promise made to our moviegoers and our investors. On March 11, which is Oscars weekend, we will enter the multi-billion-dollar retail popcorn industry with at-home popcorn that features the authentic taste of real movie theatre popcorn.”

Why AMC Stock Is Heating Up Ahead of Earnings

The popcorn update comes as welcome news for AMC stock shareholders, although the upcoming earnings report remains the key focus. For Q4, analysts expect revenue of $977.67 million, which would signify a year-over-year (YOY) decline of 16.6%. The low estimate for revenue comes in at $939.07 million while the high estimate is $1.02 billion.

Furthermore, analysts forecast an average EPS loss of 21 cents for Q4, compared to a 26 cent loss a year ago. The low estimate for EPS tallies in at a loss of 24 cents. Meanwhile, the high is a loss of 16 cents. For full-year 2022, analysts also forecast revenue of $3.9 billion — up 54.2% YOY — and an EPS loss of $1.28.

Looking forward, analysts expect Q1 revenue of $953.38 million as well, signaling YOY growth of 21.3%. Earnings per share for Q1 is expected to be a loss of 18 cents.

Last year was rough for the movie-theater industry. However, 2023 is expected to be a vast improvement over 2022. As of Feb. 20, the overall box office had collected $958.5 million in sales year-to-date (YTD), “up nearly 50% compared to last year and down just 25% from 2019.”

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/2023/02/why-amc-stock-is-heating-up-ahead-of-earnings/.

©2023 InvestorPlace Media, LLC