AMC Entertainment (NYSE:AMC) confirmed today that it would be providing its third-quarter earnings results on Nov. 8 after the market closes. The movie theater owner will also host a conference call during which it will update investors on its business.
During the update, the company will likely provide investors with more information about its movies starring Taylor Swift and Beyonce. AMC will probably also discuss initiatives that it’s taking to improve its balance sheet.
Analysts’ Q3 Estimates for AMC and Its Concert Movies
Analysts, on average, expect AMC to report $1.23 billion of revenue and a loss per share of 27 cents. For Q3 of 2022, the company generated a loss per share of $1.94 and revenue of $961 million. So obviously, AMC’s movie business has recovered a great deal since last year.
However, AMC generated revenue of more than $5 billion in 2019, while analysts’ mean estimate calls for the company to report sales of $4.79 billion for 2023. And, of course, there has been a great deal of inflation over the last four years.
Meanwhile, Swift’s movie, “Taylor Swift: The Eras Tour,” generated $95 million to $97 million in domestic sales in its opening weekend, easily becoming the most successful concert movie ever from a financial perspective. However, the movie’s performance fell well short of the most bullish forecasts of a $150 million opening weekend.
On Nov. 8, AMC will provide more information about the revenue generated by the movie in the U.S. and overseas.
Beyonce’s movie, called Beyonce Renaissance World Tour, is due to open on Dec. 1. AMC may provide more information about the pre-sales of tickets for that movie.
AMC Stock: Balance Sheet Issues
As of the end of last quarter, AMC had $4.5 billion of net debt. In August, Aron had warned that the company was facing “potentially severe liquidity hurdles.”
Last month, AMC raised $325 million through selling AMC stock. The company will probably update investors on Nov. 8 regarding additional steps that it’s taking to improve its balance sheet.
AMC stock is in the green today by about 2% in early trading. It is, however, still down by 69% year-to-date.
On the date of publication, Larry Ramer 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.
