AMC Stock reports First quarter Q1 earnings on May 9th 2022. This comes after a massive Q4 earnings which shocked both investors and critics of the movie theater company. Since the shutdown in 2020 AMC movie theaters had to truly beat all odds to climb it’s way out the financial hole the pandemic threatened to put them in. Many critics said that the movie theater industry was going to be nothing more than a thing of the past, due to the forced shutdowns of the movie theaters as well as the once booming streaming services which threatened their market share.
Q1 Earnings Estimates
The Q1 numbers are going to be a very important line in the sand for AMC Stock’s future because of the fact the company has for the most part been up and going back to normal over the last few months. As far as what the “Zacks Consensus” thinks: “For the quarter to be reported, the Zacks Consensus Estimate for loss per share has widened to 65 cents over the past seven days from 42 cents per share. In the prior-year quarter, the company had reported adjusted loss per share of $1.42. The consensus mark for revenues stands at $724.5 million, compared with the year-ago reported figure of $148.3 million.”
The Zacks Consensus Estimate for Admissions revenues is pegged at $410 million, compared with $70 million reported in the prior-year quarter. (Source Yahoo Finance)
AMC Perfectly Popcorn
Investors are excited to hear updates on one of AMC’s newest innovations which is selling popcorn outside of the movie theaters which is called perfectly popcorn. Perfectly Popcorn is a new brand of microwavable popcorn that AMC Entertainment has recently been ramping up. Why did AMC launch Perfectly Popcorn you may wonder? So that consumers are able to enjoy the notorious AMC popcorn even when you’re watching movies in the comfort of your own home. The AMC Perfectly Popcorn brand is expected to make its way into retail stores this year. With the continuous growth in the retail space, it can be expected that AMC Entertainment will continue to be increasingly recognized and talked about as it continues to branch out into every market.
Positive Cash Flow
Positive cash flow is what could set the stage for AMC Stock to finally take off and head to the moon. CEO Adam Aron suggests that since the chain is now netting a positive cash flow, this will allow them to continue to pay down debt and increase investments into the growth enhancement of the business and focus on revenue growth. Recently we’ve seen AMC entertainment continue to innovate the company. AMC has introduced NFTS, Cryptocurriences, Branded Credit Cards, AMC Perfectly Popcorn, Variable Pricing, and Recovery, Agility & Transformation.
Short Squeeze Warning
Is an AMC Short Squeeze play still on the table? While it’s been recently reported that the DOJ is currently probing companies who have been suspected of short selling, or illegally manipulating meme stock prices to go down, there is no true clarity on whether that is officially true or false. However, AMC currently does in fact have a short interest of 20% — meaning that hedge funds are continuing to bet on the AMC stock price to go down. The current short interest of AMC indicates it could in fact surge to an all-time high, and many retail investors do believe the MOASS is on the verge. But However, as always, it’s incredibly important to recognize that any investment is a risk and to proceed with caution, as the stock market is made up of an abundance of speculation. So, while the ape community is certainly invested in the AMC stock for the long haul and has been holding for over a year now, it’s always important to evaluate your own personal finances and risk versus reward.