Theater company AMC Entertainment (NYSE:AMC) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 9.3% year on year to $862.5 million. Its non-GAAP loss of $0.58 per share was 4.4% above analysts’ consensus estimates.
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Revenue: $862.5 million vs analyst estimates of $868.2 million (9.3% year-on-year decline, 0.7% miss)
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Adjusted EPS: -$0.58 vs analyst estimates of -$0.61 (4.4% beat)
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Adjusted EBITDA: -$58 million vs analyst estimates of -$68.69 million (-6.7% margin, 15.6% beat)
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Operating Margin: -16.9%, down from -11.4% in the same quarter last year
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Free Cash Flow was -$417 million compared to -$238.8 million in the same quarter last year
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Market Capitalization: $1.16 billion
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, AMC Entertainment’s demand was weak and its revenue declined by 2.7% per year. This wasn’t a great result and suggests it’s a lower quality business.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. AMC Entertainment’s annualized revenue growth of 5.6% over the last two years is above its five-year trend, but we were still disappointed by the results. Note that COVID hurt AMC Entertainment’s business in 2020 and part of 2021, and it bounced back in a big way thereafter.
This quarter, AMC Entertainment missed Wall Street’s estimates and reported a rather uninspiring 9.3% year-on-year revenue decline, generating $862.5 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 12.3% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below the sector average.
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