Core Viewpoint - AMC Entertainment is preparing for its second-quarter earnings report, with expectations of a loss and increased revenue compared to the previous year [1] Group 1: Earnings Expectations - Wall Street anticipates a loss of four cents per share on revenue of $1.35 billion, indicating a significant increase from the same quarter last year [1] Group 2: Stock Performance History - AMC Entertainment stock has a poor post-earnings history, with only one out of the last eight earnings reports resulting in a higher closing price the next day, which was a mere 0.2% increase in August 2024 [2] - The options market is pricing in a 9.2% move for the stock, which is larger than the average 4.9% swing over the past two years [2] Group 3: Current Stock Status - The stock is currently trading flat at $2.78, having finished 10 of the last 11 sessions lower, with a notable support level at $2.79 [3] - There is overhead pressure at the 320-day moving average, which may limit short-term gains, particularly around the $4 level [3] Group 4: Technical Indicators - The 14-day relative strength index (RSI) for AMC is at 13.4, indicating it is in "oversold" territory, suggesting a potential short-term bounce [4] - Year-to-date, the stock has declined by 30% [4] Group 5: Options Trading Activity - Options traders are predominantly buying calls, with 57,132 calls purchased compared to 7,224 puts in the past two weeks, indicating bullish sentiment despite the stock's struggles [5] - Short interest accounts for 15% of the stock's total available float, suggesting some call purchases may be hedging against short positions [5]

Group 1 - AMC Entertainment's shares increased by 10.6% to $3.32 following a ratings upgrade from Wedbush analyst Michael Pachter [1] - Pachter upgraded AMC shares from neutral to outperform and raised the 12-month price target from $3 to $4, citing a more consistent film release schedule and AMC's lead in premium screens in North America [2] - AMC's cost-cutting measures, including closing underperforming theaters, have improved its bottom line, reduced debt, and eliminated the need for additional share issuance in the near future [3] Group 2 - Despite a loyal fan base and bullish views, AMC's balance sheet is concerning, with negative equity nearing $2 billion and a history of operating at a loss [5] - Movie ticket sales in the U.S. have significantly declined, with 760 million tickets sold in 2024, down from 1.2 billion in the year before the pandemic and lower than the late 1990s to early 2000s when sales exceeded 1.4 billion annually [5]

Company Performance - AMC Entertainment reported a quarterly loss of $0.58 per share, better than the Zacks Consensus Estimate of a loss of $0.61, and an improvement from a loss of $0.78 per share a year ago, representing an earnings surprise of 4.92% [1] - The company posted revenues of $862.5 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.81%, but down from $951.4 million in the same quarter last year [2] - Over the last four quarters, AMC has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - AMC shares have declined approximately 32.7% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.12 on revenues of $1.31 billion, and for the current fiscal year, it is -$0.78 on revenues of $4.94 billion [7] Industry Outlook - The Leisure and Recreation Services industry, to which AMC belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AMC's stock performance [5][6]

Group 1 - Cinemark Holdings reported a quarterly loss of $0.32 per share, aligning with the Zacks Consensus Estimate, compared to earnings of $0.19 per share a year ago [1] - The company posted revenues of $540.7 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.06%, but down from $579.2 million year-over-year [2] - Cinemark has surpassed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock has lost approximately 3.5% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.80 on revenues of $958.46 million, and for the current fiscal year, it is $1.65 on revenues of $3.3 billion [7] Group 3 - The Zacks Industry Rank for Film and Television Production and Distribution is in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Cinemark is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6]