During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.Below are the ratings of the most accurate analysts for three high-yield ...

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.Below are the ratings of the most accurate analysts for three high-yield ...

Core Insights - Riverwater Partners' "Micro Opportunities Strategy" faced challenges in Q4 and FY2025, underperforming against benchmarks due to underweight exposure in speculative market areas and a focus on high-quality stocks [1][2] Company Analysis - National CineMedia, Inc. (NASDAQ:NCMI) is highlighted as a key stock in the investor letter, with a market capitalization of $360.312 million and a one-month return of -0.26%, while its shares have lost 43.53% over the past 52 weeks [2] - The investment thesis for National CineMedia was based on expected recovery in cinema advertising volumes and free cash flow post-restructuring, but the company exited the position due to weaker-than-expected box office trends and reduced advertiser demand [3] - Despite being the dominant cinema advertising platform, concerns about theatrical relevance and marketing budgets, along with market speculation regarding vertical integration, have diminished confidence in National CineMedia's earnings recovery [3] Market Trends - The strategy anticipates that the current rally in low-quality stocks will be short-lived, focusing instead on micro-cap companies with broader sales and growth trajectories as it moves into 2026 [1]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Core Insights - National CineMedia (NCMI) reported $63.4 million in revenue for Q3 2025, a year-over-year increase of 1.6% [1] - The earnings per share (EPS) for the same period was $0, compared to -$0.04 a year ago, resulting in a 100% surprise against the consensus EPS estimate of -$0.03 [1] - The reported revenue was a slight miss, with a surprise of -1.14% compared to the Zacks Consensus Estimate of $64.13 million [1] Revenue Breakdown - Local and regional advertising revenue was $9.6 million, significantly below the estimated $11.85 million, reflecting a year-over-year decline of 15.8% [4] - National advertising revenue reached $49.9 million, exceeding the average estimate of $47.9 million, with a year-over-year increase of 6.6% [4] - ESA advertising revenue from beverage concessionaire agreements was reported at $3.9 million, below the $4.4 million average estimate, marking a year-over-year decrease of 7.1% [4] Stock Performance - Shares of National CineMedia have declined by 7.2% over the past month, contrasting with a 3.6% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - National CineMedia (NCMI) reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.03, and improved from a loss of $0.04 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $63.4 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.14%, but showing an increase from year-ago revenues of $62.4 million [2] - National CineMedia shares have declined approximately 37.7% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $95.9 million, while for the current fiscal year, the estimate is -$0.02 on revenues of $246.67 million [7] Industry Context - The Advertising and Marketing industry, to which National CineMedia belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5] Stock Performance and Estimates - Ahead of the earnings release, the estimate revisions trend for National CineMedia was unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] - Another company in the same industry, Clear Channel Outdoor, is expected to report a quarterly loss of $0.04 per share, with revenues anticipated to decline by 28.1% from the year-ago quarter [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $63.4 million, up 2% year-over-year, and within the guidance range of $62 million to $67 million [14][15] - Adjusted EBITDA for the quarter was $10.2 million, exceeding $8.8 million in the same period last year [18] - National advertising revenue totaled $49.9 million, up 6.6% from $46.8 million in the prior year [15] - Total operating expenses decreased to $65.2 million from $69.9 million in the same period last year [18] - Free cash flow for the quarter was negative $1.8 million, an improvement from negative $2.4 million in the prior year [19] Business Line Data and Key Metrics Changes - Programmatic revenue grew approximately four times compared to last year, marking the strongest programmatic quarter ever [6][7] - Self-serve platform revenue increased by 23% quarter-over-quarter, driven by expanded outreach [7] - Platinum revenue was up 19% year-over-year, achieving the highest third-quarter Platinum sales in NCM's history [16] Market Data and Key Metrics Changes - NCM's quarterly audience was 109 million, down 11% compared to Q3 2024, reflecting a decline in overall attendance [4][5] - National revenue per attendee was $0.46, up 20% year-over-year, the highest in the last five years [17] Company Strategy and Development Direction - The company is focused on expanding its programmatic and self-serve advertising capabilities to capture a greater share of the advertising market [6][7] - NCM is enhancing its local sales organization and refining its structure to better align with market opportunities [8] - The company is optimistic about upcoming tentpole releases, which are expected to drive attendance and related revenues [12][23] Management's Comments on Operating Environment and Future Outlook - Management noted that advertiser sentiment stabilized in Q3, with a rebound in demand across key advertising categories [4] - The company expects sustained momentum through year-end, driven by a strong holiday film slate [12][23] - Management expressed confidence in the growth trajectory for 2026, anticipating a strong box office and attendance [41][42] Other Important Information - The company announced a quarterly dividend of $0.03 per share, amounting to $2.8 million, to be paid on November 26, 2025 [21] - NCM has repurchased 3.3 million shares at an average price of $5.78 year-to-date, with additional shares repurchased post-quarter end [22] Q&A Session Summary Question: Can you discuss the programmatic and ad categories adopting that format? - Management highlighted that programmatic revenue was four times higher than last year, with most new clients coming from various segments [26][27] Question: Is the renewal with AMC Theatres affecting profit growth? - Management explained that the extra week in Q4 would lead to higher theater access fees, impacting margins [28] Question: Are advertisers waiting to commit to campaigns for new IP? - Management indicated that advertisers generally buy impressions across various movies, not specifically avoiding new IP [34][36] Question: What is the outlook for 2026? - Management expressed optimism for 2026, citing good momentum from Q3 into Q4 and expected growth in box office and attendance [41][42]

Financial Performance - Total revenue for Q3 2025 increased by $1.0 million, or 1.6%, to $63.4 million compared to Q3 2024's $62.4 million[142]. - National advertising revenue rose by $3.1 million, or 6.6%, from $46.8 million in Q3 2024 to $49.9 million in Q3 2025, driven by a 41.9% increase in national advertising utilization[144]. - Local and regional advertising revenue decreased by $1.8 million, or 15.8%, from $11.4 million in Q3 2024 to $9.6 million in Q3 2025 due to reduced contract activity in several categories[145]. - Total theater attendance fell by 10.6% from 121.6 million in Q3 2024 to 108.7 million in Q3 2025[143]. - Adjusted OIBDA for Q3 2025 was $10.2 million, up from $8.8 million in Q3 2024, reflecting a 15.9% increase[140]. - Adjusted OIBDA margin improved to 16.1% in Q3 2025 from 14.1% in Q3 2024[140]. - Net income attributable to NCM, Inc. was $1.6 million in Q3 2025, a significant improvement from a net loss of $3.6 million in Q3 2024, representing a 144.4% increase[142]. - Operating loss decreased to $1.8 million in Q3 2025 from $7.5 million in Q3 2024, marking a 76.0% improvement[140]. - Total revenue per attendee increased by 13.7% from $0.513 in Q3 2024 to $0.583 in Q3 2025[143]. - Total revenue decreased by $4.5 million, or 2.9%, from $154.5 million for the nine months ended September 26, 2024 to $150.0 million for the nine months ended September 25, 2025[155]. - National advertising revenue increased by $0.6 million, or 0.5%, from $117.9 million to $118.5 million for the nine months ended September 25, 2025, driven by a 17.0% increase in national advertising utilization[157]. - Local and regional advertising revenue decreased by $5.7 million, or 21.5%, from $26.5 million to $20.8 million for the nine months ended September 25, 2025, primarily due to decreased contract activity[158]. Operating Expenses - Total operating expenses decreased by $4.7 million, or 6.7%, from $69.9 million in Q3 2024 to $65.2 million in Q3 2025[147]. - Theater exhibition fees decreased by $0.6 million, or 1.8%, from $32.9 million in Q3 2024 to $32.3 million in Q3 2025, primarily due to a 10.6% decrease in network attendance[148][149]. - Selling and marketing costs remained stable at $10.1 million for both Q3 2024 and Q3 2025, with a $0.5 million decrease in personnel-related costs offset by a $0.3 million increase in variable costs[150]. - Administrative and other costs decreased by $2.3 million, or 17.8%, from $12.9 million in Q3 2024 to $10.6 million in Q3 2025, mainly due to a reduction in legal and professional fees[151]. - Depreciation expense decreased by $0.1 million, or 8.3%, from $1.2 million in Q3 2024 to $1.1 million in Q3 2025[152]. - Amortization expense decreased by $1.6 million, or 16.8%, from $9.5 million in Q3 2024 to $7.9 million in Q3 2025[153]. - Total operating expenses for the nine months ended September 25, 2025 decreased by $6.2 million, or 3.2%, from $193.9 million to $187.7 million[160]. - Selling and marketing costs increased by $1.0 million, or 3.4%, from $29.6 million to $30.6 million for the nine months ended September 25, 2025[163]. - Administrative and other costs decreased by $5.8 million, or 14.6%, from $39.8 million to $34.0 million for the nine months ended September 25, 2025[164]. - Depreciation expense decreased by $0.1 million, or 2.9%, from $3.4 million to $3.3 million for the nine months ended September 25, 2025[165]. - Amortization expense decreased by $2.9 million, or 10.2%, from $28.4 million to $25.5 million for the nine months ended September 25, 2025[166]. - Total non-operating expense decreased by $5.4 million, or 71.1%, from $7.6 million to $2.2 million for the nine months ended September 25, 2025[167]. Cash Flow and Financing - Cash, cash equivalents, and marketable securities decreased by $45.3 million from $75.2 million to $29.9 million as of September 25, 2025[174]. - Operating cash flow significantly decreased to $0.1 million from $29.8 million for the nine months ended September 25, 2025[176]. - NCM LLC has no outstanding borrowings under the 2025 Credit Facility as of September 25, 2025, with a total capacity of $45.0 million[172]. - The available cash amount to NCM, Inc. for the three months ended September 25, 2025, was approximately positive $7.1 million[178]. - Cash provided by operating activities decreased by $29.7 million for the nine months ended September 25, 2025, compared to the same period in 2024, primarily due to an $18.7 million decrease in deferred revenue and a $7.3 million decrease in accounts receivable collections[180]. - Cash used by investing activities increased by $2.9 million for the nine months ended September 25, 2025, attributed to a $2.0 million increase in purchases of cost method investments and a $0.4 million increase in purchases of intangible assets[180]. - Cash used in financing activities increased by $27.4 million for the nine months ended September 25, 2025, mainly due to $10.0 million repayments of both the 2023 and 2025 Revolving Credit Facilities and an $8.2 million increase in dividend payments[180]. - As of September 25, 2025, NCM LLC owed NCM, Inc. $21.9 million in deferred available cash distributions[181]. - NCM, Inc. plans to utilize cash balances and future cash distributions to fund payments related to the TRA, stock repurchases, and future dividends, with the timing and amount at the discretion of the Board of Directors[182]. - The maximum capacity under the 2025 Credit Facility is $45.0 million, with a floating interest rate that could increase cash interest expense by approximately $0.5 million for a 100-basis point fluctuation if fully drawn[185]. - The company expects to make a TRA payment in 2026 for the 2025 tax year, following an estimated TRA payment in 2025 for the 2024 tax year[182]. Agreements and Ownership - The company has long-term exhibitor services agreements (ESAs) with a weighted average remaining term of 12.1 years as of September 25, 2025[125]. - On April 17, 2025, the company entered into a new agreement with AMC, extending the term of the ESA by five years and releasing $21.6 million of the 'Payable under the TRA'[128][129]. - Upon emerging from bankruptcy on August 7, 2023, NCM, Inc. regained 100.0% ownership of NCM LLC, which was reconsolidated into the financial statements[135]. - The company recorded a gain on bankruptcy of $916.4 million for the year ended December 26, 2024[134]. - NCM LLC recorded a gain on deconsolidation of $557.7 million during the second quarter of 2023 due to its Chapter 11 filing[132]. Accounting Policies - There were no significant changes in critical accounting policies as of September 25, 2025[183]. - The company does not anticipate that recent accounting pronouncements will have a material impact on its financial statements[184]. - The company will consider returning a portion of its free cash flow to stockholders, depending on various economic and financial factors[182].

Financial Performance - Total revenue for Q3 2025 increased by 1.6% to $63.4 million compared to $62.4 million in Q3 2024[3] - Net income for Q3 2025 was $1.6 million, or $0.02 per diluted share, a significant improvement from a net loss of $3.6 million, or $0.04 per diluted share, in Q3 2024[3] - Adjusted OIBDA for Q3 2025 rose to $10.2 million from $8.8 million in Q3 2024, reflecting improved operational efficiency[3] - For the nine months ended September 25, 2025, total revenue decreased by 2.9% to $150.0 million compared to $154.5 million for the same period in 2024[4] - Operating loss for Q3 2025 decreased to $1.8 million from $7.5 million in Q3 2024, indicating improved financial performance[3] - Total revenue for the three months ended September 25, 2025, was $63.4 million, a slight increase from $62.4 million for the same period in 2024, while total revenue for the nine months ended was $150.0 million, down from $154.5 million[25] - National advertising revenue for the three months ended September 25, 2025, was $49.9 million, up 6.6% from $46.8 million in the same period last year, while local and regional advertising revenue decreased to $9.6 million from $11.4 million[25] - Adjusted OIBDA for the three months ended September 25, 2025, was $10.2 million, compared to $8.8 million for the same period in 2024, with an adjusted OIBDA margin of 16.1%[25][33] - The company reported an operating loss of $1.8 million for the three months ended September 25, 2025, an improvement from a loss of $7.5 million in the same period last year[25][33] - Adjusted income per share for the three months ended September 25, 2025, was $0.00, compared to a loss of $0.05 in the same period last year[25] Assets and Equity - Total assets as of September 25, 2025, were $451.9 million, down from $568.6 million as of December 26, 2024[20] - Cash, cash equivalents, and marketable securities decreased to $32.9 million from $78.2 million as of December 26, 2024[20] - The company reported a decrease in total equity to $350.5 million as of September 25, 2025, compared to $411.2 million at the end of 2024[20] Attendance and Screens - Total attendance for the three months ended September 25, 2025, was 108.7 million, down from 121.6 million in the same period in 2024, while attendance for the nine months ended was 296.4 million, slightly up from 290.2 million[25] - The company had 17,696 total screens at the end of the period, a decrease from 18,141 screens at the end of September 26, 2024[22] - ESA Party attendance for the three months ended September 25, 2025, was 68.2 million, down from 74.3 million in the same period last year[25] Dividends and Future Projections - The company declared a cash dividend of $0.03 per share, totaling approximately $2.8 million, to be paid on November 26, 2025[6] - NCM LLC expects Q4 2025 total revenue to be between $91.0 million and $98.0 million, with Adjusted OIBDA projected in the range of $30.0 million to $35.0 million[7] Adjusted Losses and Costs - Adjusted net loss excluding adjusting items for the nine months ended September 25, 2025, was $34.8 million, an improvement from a loss of $28.6 million for the same period in 2024[38] - Workforce reorganization costs for the nine months ended September 25, 2025, totaled $3.1 million, reflecting changes to the company's workforce[38] - System optimization costs incurred in the third quarter of 2024 amounted to $1.5 million, with an additional $1.8 million for the nine months ended September 25, 2025[39] - The company incurred $5.4 million in advisor and legal fees related to the Cineworld proceeding and Chapter 11 case for the nine months ended September 25, 2025[38] - The loss on re-measurement of the payable under the tax receivable agreement for the nine months ended September 25, 2025, was $1.6 million, compared to a gain of $9.3 million for the same period in 2024[38] - Diluted income per share excluding adjusting items for the nine months ended September 25, 2025, was $(0.37), compared to $(0.30) for the same period in 2024[38] - The weighted average shares outstanding for diluted income per share as reported was 93,701,506 for the three months ended September 25, 2025[38]