AMC Entertainment (AMC) shares are up ahead of the company's 2nd quarter results which will be announced after the closing bell today. Wall Street is expecting the company to report an adjusted loss per share of .94, according to Bloomberg estimates.
Revenue is expected to climb to $382.25 million compared to $19 million reported for the same quarter last year. The top line though is still expected to be well below the company's 2nd quarter total revenue of $1.5 billion in 2019.
AMC shares are up more than 1,500% year-to-date since becoming e a Reddit favorite among Wall Street Bets retail traders. That's when it turned into a 'meme-stock,' along with GameStop (GME), experiencing bouts of volatility since the beginning of the year.
"On the core fundamentals, clearly we're seeing lower demand for movies that are coming out," Macquarie Group Senior Analyst Chad Beynon told Yahoo Finance Live.
Beynon said he would be keeping an eye out on cash flow as other movie theater companies have been burning less cash, or no cash.
Theaters have been welcoming movie-goers under social distancing guidelines, but it's unclear the impact the Delta Covid-19 variant will have on the business. A relapse or stricter measures could hinder the industry's slow recovery.
The company has cashed in on the meme stock frenzy, selling shares along the way. That cash could be used for acquisitions and growing the business.
“Given our scale, experience and commitment to innovation and excellence, AMC is being presented with highly attractive theatre acquisition opportunities,” CEO Adam Aron said in a company filing earlier this year.
The stock is down from its all time high of $72.62 earlier this year. But it is still trading much higher than Wall Street estimates. AMC has no analyst Buy recommendation. It has 5 Hold and 4 Sell ratings, with an average target price of $5.87. On Monday it was trading around $33 per share prior to reporting earnings.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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