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Investing.com - Benchmark has reiterated a Buy rating and $35.00 price target on Cinemark Holdings (NYSE:CNK) following the cinema chain’s strong second-quarter performance. According to InvestingPro data, the stock appears undervalued, trading at an attractive P/E ratio of 10.3x relative to its growth prospects.
Cinemark reported revenue of $941 million and adjusted EBITDA of $232 million for the quarter, with AEBITDA exceeding the consensus expectation of $229 million while revenue came in slightly below the $943 million consensus estimate. The company’s trailing twelve-month EBITDA stands at $609.8M, with impressive revenue growth of 13.8% year-over-year.
The company achieved an adjusted EBITDA margin of 24.7%, representing the second-highest AEBITDA performance in company history, supported by improved operating leverage, strong attendance, and effective monetization strategies.
Cinemark capitalized on strong film performances including A Minecraft Movie and Lilo & Stitch, which helped drive all-time highs in food and beverage per-capita spending and delivered the highest domestic revenue quarter on record.
Looking ahead, Benchmark notes that Q4 and fiscal 2026 are expected to benefit from a highly anticipated slate of blockbusters and original content, while the company’s solid balance sheet and capital allocation strategy could enhance potential upside in both valuation and shareholder returns. InvestingPro analysis reveals 8 additional key insights about Cinemark’s future prospects, available exclusively to subscribers through detailed Pro Research Reports.
In other recent news, Cinemark Holdings reported its second-quarter 2025 earnings, which did not meet Wall Street expectations. The company announced an earnings per share (EPS) of $0.63, falling short of the anticipated $0.7052 by 10.66%. Additionally, Cinemark’s revenue was slightly below projections, coming in at $940.5 million compared to the forecasted $942.98 million. Despite these results, the company’s stock remained stable in pre-market trading. There have been no recent reports of mergers involving Cinemark. Analyst firms have yet to release any new upgrades or downgrades for Cinemark following the earnings announcement. These developments are part of the latest updates concerning Cinemark Holdings.
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