AMC Q3 Earnings & Outlook, 2022.

AMC Entertainment Holdings Inc. is set to disclose its third-quarter earnings on November 8.  A briefing on the company will be helpful.

AMC Entertainment Holdings Inc. which was established in 1920 and based in Leawood, Kansas is famously known for its theater exhibitions and other subsidiaries it operates.

The company gained formidable stakes in theaters around Europe and the United States over decades. It is said to have 10,600 screens as of March 1, 2022, and about 950 theaters.

While the world anticipates the release of AMC Q3. earning for 2022, let’s refresh our minds with its present earnings to better analyze the forthcoming results

AMC Current Quarterly Earnings for 2022

Reports from the last quarter declare AMC to have closed with a net loss of 20% per share, which happens to be a merciful escape from the predicted 19% loss per share.

The company reported quarterly revenue of $1.166 billion, exceeding analysts’ expectations of $1.16 billion. Based on its price action, AMC is said to have a high of $34.33 and a low of $5.47 going by its stock chart for the year.

According to Adam Aron, AMC’s CEO, the company anticipates a high probability of a bullish trend as regards improvement in operational results for the Q4 of 2022. With the release of the new movie titles, the possibility of this seems significant.

He also mentioned July’s food and beverage figures to be the largest single figure in the company’s history for their U.S. theaters, but he cautioned of a drop in the third quarter.

AMC Quarterly Earning Outlook

Wall Street anticipates a 12-month increase of 27%  in food and beverage sales to $337.5 million for the third quarter, following the expected 36% increase in ticket sales to $580.1 million.

AMC shares have plunged more than 78% since the beginning of 2022, as investors’ enthusiasm for risky assets has diminished amid this year’s larger selloff. We have seen its stock hit a 17-month low in October, and this has been in motion although shares have risen since then.

AMC’s total operating expenses have been on the rise, way faster than its sales recovery, and this has been expected to be $23% higher than that of last year which was $977.5 million in sales, as opposed to that of this quarter of about $1.12 billion. This pattern is likely to persist into the fourth quarter.

How Traders Should React To AMC’s Quarterly Earning

The biggest concern for stockholders will be that AMC continues in the red and keeps burning through cash. Simply put, AMC continues to spend more than it earns. With such a scene as this traders/stockholders will need to make proper analysis before making decisions.

While ticket sales are normally the focus of attention, shareholders should keep a close eye on how their returning moviegoers treat themselves with snacks. Since this appears to be where AMC gets its money.

Food and beverages have considerably better margins, but they may be more exposed to a decrease in consumer spending if recession fears grow.