AMC Entertainment (AMC) operates a portfolio of movie theatres in the U.S. and international markets. Its global network comprises about 950 theatres and 10,600 screens. The company has plans to expand into the popcorn business in 2022.
With this in mind, let’s take a look at the company’s financials and understand what has changed in its risk profile that investors should know. (See Top Smart Score Stocks on TipRanks)
Q3 Financial Results
Recently, AMC Entertainment reported revenues of $763.2 million for the third quarter of 2021. It had reported revenues of 119.5 million in the same quarter last year.
The company posted an adjusted loss per share of $0.44 against a loss of $5.70 per share in the same quarter last year.
AMC Entertainment ended the quarter with $1.8 billion of liquidity, which comprised $1.6 billion cash and the rest in revolving credit facility. (See AMC Entertainment stock charts on TipRanks).
According to the new TipRanks’ Risk Factors tool, AMC’s main risk category is Finance & Corporate, which accounts for 48% of the total 29 risks identified for the stock. Recently, the company added one new risk factor under the Production category.
The company has informed investors that it recently experienced supply chain disruptions due to which it was forced to seek alternative suppliers and suspend sales in some markets. It cautions that the supply chain challenges may continue for the foreseeable future and could increase its costs and adversely impact sales.
The Finance & Corporate risk factor’s sector average is at 48%, compared to AMC’s 42%.
Following AMC Entertainment’s third-quarter earnings, Credit Suisse analyst Meghan Durkin reiterated a Sell rating on the stock with a price target of $1.55. Durkin’s price target suggests 96.12% downside potential.
Consensus among analysts is a Moderate Sell based on 2 Holds and 2 Sells. The average AMC Entertainment price target of $11.75 implies 70.57% downside potential.