Theater company AMC Entertainment (NYSE:AMC) reported Q4 CY2025 results exceeding the market\u2019s revenue expectations , but sales fell by 1.4% year on year to $1.29 billion. Its non-GAAP loss of $0.18 per share was 28% 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> $1.29 billion vs analyst estimates of $1.28 billion (1.4% year-on-year decline, 1% beat)<\/p>\n<\/li>\n Adjusted EPS:<\/strong> -$0.18 vs analyst estimates of -$0.25 (28% beat)<\/p>\n<\/li>\n Adjusted EBITDA:<\/strong> $134.1 million vs analyst estimates of $121 million (10.4% margin, 10.8% beat)<\/p>\n<\/li>\n Operating Margin:<\/strong> 0%, in line with the same quarter last year<\/p>\n<\/li>\n Free Cash Flow Margin:<\/strong> 3.4%, down from 8.7% in the same quarter last year<\/p>\n<\/li>\n Market Capitalization:<\/strong> $616.7 million<\/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 performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, AMC Entertainment grew its sales at a 31.3% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.<\/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 recent performance shows its demand has slowed as its revenue was flat over the last two years. 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\u2019s revenue fell by 1.4% year on year to $1.29 billion but beat Wall Street\u2019s estimates by 1%.<\/p>\n Looking ahead, sell-side analysts expect revenue to grow 7.7% over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.<\/p>\n Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend<\/a>.<\/p>\n<\/p><\/div>\n AMC Entertainment\u2019s operating margin has been trending up over the last 12 months, but it still averaged negative 1% over the last two years. This is due to its large expense base and inefficient cost structure.<\/p>\n In Q4, AMC Entertainment\u2019s breakeven margin was 0%, in line with the same quarter last year. This indicates the company\u2019s overall cost structure has been relatively stable.<\/p>\n Revenue trends explain a company\u2019s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth \u2013 for example, a company could inflate its sales through excessive spending on advertising and promotions.<\/p>\n Although AMC Entertainment\u2019s full-year earnings are still negative, it reduced its losses and improved its EPS by 63.7% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.<\/p>\n In Q4, AMC Entertainment reported adjusted EPS of negative $0.18, in line with the same quarter last year. This print easily cleared analysts\u2019 estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects AMC Entertainment to improve its earnings losses. Analysts forecast its full-year EPS of negative $0.97 will advance to negative $0.59.<\/p>\n It was good to see AMC Entertainment beat analysts\u2019 EPS expectations this quarter. We were also happy its EBITDA outperformed Wall Street\u2019s estimates. On the other hand, its adjusted operating income missed. Overall, this print had some key positives. The stock remained flat at $1.17 immediately after reporting.<\/p>\n\n
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