AMC Stock Has a Lot to Prove This Week
It's lights. It's camera. Will it be action for AMC Entertainment (NYSE: AMC)? The country's largest multiplex operator is delivering a critical financial update shortly after Thursday's market close.
There's a lot riding on AMC's quarterly report this week. The bar may not seem low. Analysts see a narrowing deficit on $1.16 billion in revenue. This is a whopping 161% increase over where it landed for the same three months a year earlier, but stay with me. Domestic ticket sales during the second quarter soared 186%. There's an international component to AMC's numbers, but let's peel back another curtain. Food and beverage sales -- the high-margin part of the multiplex business -- clocked in 40% higher per patron than the year before in the first quarter. A robust slate of films enhanced by thirsty and hungry moviegoers is a pretty potent combo.
The analyst consensus is actually pretty low. It should be a good day for a beat, but AMC will need more. The stock is up 74% since bottoming out in May. Let's look at another potential catalyst.
Source Fool.com
