Theater company AMC Entertainment (NYSE:AMC) beat Wall Street\u2019s revenue expectations in Q2 CY2025, with sales up 35.6% year on year to $1.40 billion. Its non-GAAP loss of $0 per share was significantly above analysts\u2019 consensus estimates.<\/p>\n
Is now the time to buy AMC Entertainment? Find out in our full research report<\/a>.<\/p>\n Revenue:<\/strong> $1.40 billion vs analyst estimates of $1.36 billion (35.6% year-on-year growth, 3.1% beat)<\/p>\n<\/li>\n Adjusted EPS:<\/strong> $0 vs analyst estimates of -$0.08 (significant beat)<\/p>\n<\/li>\n Adjusted EBITDA:<\/strong> $189.2 million vs analyst estimates of $153.4 million (13.5% margin, 23.3% beat)<\/p>\n<\/li>\n Operating Margin:<\/strong> 6.6%, up from -4.6% in the same quarter last year<\/p>\n<\/li>\n Free Cash Flow<\/strong> was $88.9 million, up from -$79.2 million in the same quarter last year<\/p>\n<\/li>\n Market Capitalization:<\/strong> $1.27 billion<\/p>\n<\/li>\n<\/ul>\n With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.<\/p>\n A company\u2019s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, AMC Entertainment\u2019s 5.7% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the consumer discretionary sector and is a rough starting point for our analysis.<\/p>\n We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. AMC Entertainment\u2019s annualized revenue growth of 7.4% over the last two years is above its five-year trend, but we were still disappointed by the results. Note that COVID hurt AMC Entertainment\u2019s business in 2020 and part of 2021, and it bounced back in a big way thereafter.<\/p>\n This quarter, AMC Entertainment reported wonderful year-on-year revenue growth of 35.6%, and its $1.40 billion of revenue exceeded Wall Street\u2019s estimates by 3.1%.<\/p>\n Looking ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds.<\/p>\n Unless you\u2019ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories<\/a>.<\/p>\n<\/p><\/div>\n\n
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