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On Tuesday, Benchmark analysts maintained their Hold rating on AMC Entertainment (NYSE:AMC) stock, which currently trades at $2.89. The firm’s analysts pointed to a challenging box office environment in the first quarter, with a notable decline in domestic industry revenue. The quarter’s box office revenue fell 11.6% year-over-year to $1.42 billion, lacking standout film releases and relying heavily on titles carried over from the previous quarter. This situation likely led to higher film rental expenses and did not provide significant new drivers for attendance. InvestingPro data shows the company’s gross profit margin stands at just 13.8%, reflecting these operational challenges.
Analysts expect AMC’s revenue and Adjusted EBITDA (AEBITDA) to decrease sequentially from the last quarter. The company had previously set a post-pandemic record in the fourth quarter of 2024, achieving its highest quarterly cash flow since the onset of the pandemic. During that period, AMC reported revenue of $1.3 billion, marking an 18% increase year-over-year. Additionally, AEBITDA more than tripled to $164.8 million, and the company set a post-pandemic fourth-quarter attendance record with 62 million guests. According to InvestingPro analysis, AMC carries a substantial debt burden of $8.3 billion, with short-term obligations exceeding liquid assets. Get access to 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
The first quarter is traditionally the quietest period of the year for AMC, as noted by the company’s management. Analysts are aligning their expectations with this seasonal pattern, anticipating a downturn in financial performance following the exceptional results of the previous quarter.
AMC’s performance in the fourth quarter of 2024 had been a significant achievement for the company, reflecting a strong recovery from the pandemic’s impact on the entertainment industry. However, the lack of new blockbuster titles in the first quarter of 2025 has been a setback, contributing to the anticipated decline in financial metrics.
Benchmark’s analysis suggests that investors should maintain a cautious stance on AMC stock for the time being, given the current state of the box office and the company’s expected financial results. AMC Entertainment has not yet commented on the analyst’s remarks or provided any updates regarding its strategies to navigate the quieter first quarter.
In other recent news, AMC Entertainment reported a record-breaking weekend with the success of "A Minecraft Movie," marking its best weekend in 2025 and the second-largest April weekend since 2019. The movie’s performance exceeded industry expectations, boosting attendance and revenue, including food and beverage sales. Cinemark also celebrated its highest-grossing weekend for a PG-rated film, highlighting the film’s contribution to record ticket sales for family films. In a strategic move, AMC announced an expansion of its partnership with IMAX (NYSE:IMAX) Corporation to introduce IMAX with Laser technology at over 180 AMC locations in the U.S., further enhancing its premium offerings. Additionally, AMC and Dolby Laboratories (NYSE:DLB) plan to add 40 new Dolby Cinema locations by the end of 2027, increasing their footprint by nearly 25%. This expansion underscores the growing demand for premium cinematic experiences. Meanwhile, AMC and CJ 4DPLEX will introduce 65 new SCREENX and 4DX theaters across the U.S. and Europe, enhancing the multisensory and panoramic viewing experiences. These developments reflect AMC’s commitment to innovation and its strategy to attract audiences with high-quality moviegoing experiences.
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