AMC Entertainment (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report shares on Monday declined by almost 4% after hours despite its third quarter results reporting higher revenue and a smaller loss than analysts expected.
Shares of AMC on Monday fell by 3.9% to $43.30 in after hours trading. The stock had risen 8% in the regular session.
AMC reported total revenue of $763.2 million for the third quarter, beating an estimate from analysts surveyed by Refinitiv of $708.3 million. The company reported a loss of $224.2 million, or 44 cents a share, which beat an estimate of a loss of 53 cents.
The nation’s largest movie theater company reported a net loss of $905.8 million, or $8.41 a share for the same period in 2020, which reflected a devastating loss of business during the Covid-19 pandemic.
“Our financial results continue to improve,” AMC CEO Adam Aron said in a Monday statement. “More and more major films are on the docket for release in the remainder of 2021, and throughout 2022. One can see and feel that our industry and our company are on a path of recovery and improvement. Therefore, our spirits are upbeat.
“However, even amidst such good news, we are not yet where we want and need to be. We wish to emphasize that no one should have any illusions that there is not more challenge ahead of us still to be met. The virus continues to be with us, we need to sell more tickets in future quarters than we did in the most recent quarter, and adjusted EBITDA is still well below pre-pandemic levels,” Aron said.
AMC and its competitor Cinemark (CNK) – Get Cinemark Holdings, Inc. Report on Nov. 1 reported that their October ticket sales were the highest for any month since February 2020. The companies did not provide exact numbers.