Motion picture exhibitor Cinemark Holdings, Inc. (CNK) has reported weaker-than-expected results for the third quarter ended September 30, 2021, as the company’s earnings and revenue missed the Street’s estimates.
Following the news, shares of the company gained 8.2% in Friday’s trading session. The stock, however, pared its gains slightly to close at $22 in the extended trading session.
Revenue & Earnings
Cinemark reported quarterly revenues of $434.8 million, up from $35.5 million in the same quarter last year. However, the figure failed to surpass the consensus estimate of $442.82 million. Admissions revenues and Concession revenues registered a significant year-over-year increase and stood at $225.5 million and $164.3 million, respectively.
The company reported a loss per share of $0.65, narrower than the previous year’s loss of $1.25 but wider than the consensus estimate of $0.59 per share.
Other Operating Metrics
The company’s attendance at the end of the quarter stood at 30.7 million, which compares favorably with the previous year’s figure of 1.9 million. Further, its Concession revenues per patron witnessed a year-over-year growth of 9.9% to $5.35. However, the Average ticket price declined 7.7% from the previous year to $7.35.
Management Commentary
The CEO of Cinemark, Mark Zoradi, said, “We are highly encouraged by sustained positive trends in escalating consumer demand for theatrical moviegoing and growing momentum at the box office. This favorable progress was clearly demonstrated in our 61% quarter-over-quarter growth in worldwide attendance, which flowed through to our bottom line as our third quarter net loss reduced $64.7 million dollars from the second quarter and Adjusted EBITDA improved to $44.3 million dollars.”
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Price Target
Recently, Barrington analyst James Goss reiterated a Buy rating on the stock with a price target of $26, which implies upside potential of 17.6% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Cinemark price target of $25.14 implies that the stock has upside potential of 13.7% from current levels.
Smart Score
Cinemark scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 69% over the past year.
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