Benchmark raises Marcus stock estimates on strong box office performance

Published 08/07/2025, 15:04
Benchmark raises Marcus stock estimates on strong box office performance

Investing.com - Benchmark maintained its Buy rating and $25.00 price target on Marcus Corp . (NYSE:MCS) while raising its quarterly estimates due to stronger-than-expected box office results. According to InvestingPro data, this target represents nearly 50% upside from the current price of $16.80, with analysts unanimously maintaining Buy recommendations.

The research firm increased its Q2 sales estimate for Marcus to $199 million, up from its previous forecast of $181 million, reflecting the better-than-anticipated theatrical performance.

Benchmark also raised its adjusted operating income before depreciation and amortization (AOIBDA) estimate to $27 million from $22 million previously.

While Marcus’s theatrical segment reportedly underperformed broader industry trends slightly, the box office results still significantly exceeded Benchmark’s earlier projections. The firm believes Marcus’s hotel segment performed in line with expectations for the quarter.

Benchmark continues to consider Marcus a "Best Idea" investment opportunity, citing potential upside from accelerating free cash flow, a discounted valuation, and exposure to both the box office recovery and high-margin hotel growth.

In other recent news, Marcus Corporation has reported its first-quarter 2025 earnings, showing a larger-than-expected loss in earnings per share (EPS) at -$0.54, missing the forecast of -$0.43. However, the company exceeded revenue expectations, generating $148.8 million compared to the projected $145.56 million. Benchmark analysts have reiterated a Buy rating on Marcus Corp stock with a $25 target, noting the company’s strong performance in its theatrical segment, despite increased film rental costs. The hotel operations also showed positive results, supported by a strong ski season and consistent group demand.

B.Riley analysts have also initiated a Buy rating for Marcus Corp, with a price target of $24, despite revising down the company’s adjusted earnings projections for 2025 and 2026 due to conservative projections in its Hotel and Resorts segment. Marcus Corp has approved a new 2025 Omnibus Incentive Plan, allowing for equity and cash incentive awards, which aligns with its strategy to incentivize performance. Additionally, the company has announced regular quarterly cash dividends of $0.07 per share for common stock and $0.064 for Class B stock, reflecting its commitment to providing shareholder value.

These developments highlight Marcus Corporation’s mixed financial performance but demonstrate strategic initiatives to drive future growth and shareholder engagement.

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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