Benchmark maintains AMC stock hold rating amid Q1 beats

Published 14/05/2025, 15:32
© Reuters

On Wednesday, Benchmark analyst reiterated a Hold rating for AMC Entertainment (NYSE:AMC) following the company’s first-quarter earnings report. With revenue of $4.5 billion in the last twelve months, AMC’s financial performance surpassed market expectations in terms of revenue and Adjusted EBITDA, despite challenges from a weaker-than-usual box office in the first quarter of 2025. According to InvestingPro data, the company operates with a gross profit margin of about 13%. The management described this period as an outlier rather than an indication of a long-term issue, citing a substantial recovery in box office receipts during April and the beginning of May.

AMC’s executives expressed optimism about the company’s prospects for a robust rebound throughout 2025 and extending into 2026. This confidence is buoyed by a strong lineup of upcoming film releases and early indicators of a resurgence in consumer interest. Despite ongoing concerns about liquidity, AMC is strategically focusing on premium viewing experiences, loyalty programs, and experiential enhancements to increase the value gained from each customer.

The company’s outlook is dependent on the speed at which the box office returns to normal levels and AMC’s ability to maintain the positive trends observed in the early second quarter. Investors are expected to closely monitor these developments as indicators of AMC’s future financial health and stability.

In other recent news, AMC Entertainment Holdings reported its first-quarter 2025 earnings, revealing a larger-than-expected loss and revenue shortfall compared to analyst forecasts. The company’s earnings per share stood at -0.58, missing the forecasted -0.46, while revenue came in at $862.5 million, falling short of the expected $986.48 million. Despite these financial setbacks, AMC remains optimistic about future box office performance, anticipating a stronger year in 2025. In an effort to boost attendance, AMC has launched a new discount program offering 50% off ticket prices for AMC Stubs members every Wednesday. This initiative, named "50% Off Wednesdays," is part of the company’s ongoing efforts to enhance the moviegoing experience and follows the success of Discount Tuesdays. Additionally, AMC has been expanding its premium cinema offerings, including plans to increase its premium large format and extra-large format screens. These developments come as the company continues to navigate challenges in the cinema industry, including a historically low domestic box office in the first quarter of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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