AMC Entertainment Holdings Inc. posted impressive third-quarter results, boosting the U.S. movie theater industry on Thursday. The popular movie theater chain turned a profit, reporting positive net income for the second consecutive quarter. As a result, AMC’s stock (AMC) saw a 1.8% rise in premarket trading on Thursday.
Positive Momentum for Competitors
Cinemark Holdings Inc. (CNK), a rival movie theater company, also experienced a surge, with its stock rising 0.9% in premarket trades. Cinemark exceeded analysts’ expectations in its Q3 results, giving further confidence to the industry. Additionally, Imax Corp. (IMAX), a high-end movie theater operator, witnessed a 0.2% increase in its stock value after reporting better-than-expected Q3 results last month.
Success Stories and Future Prospects
During the conference call discussing the results, AMC CEO Adam Aron highlighted the significant impact of blockbuster movies such as “Barbie,” “Oppenheimer,” and the latest installment of the “Mission Impossible” series. Aron also praised Taylor Swift’s record-breaking concert film, which opened on October 12. AMC benefited greatly from this success as both the distributor and exhibitor of the film. In light of this achievement, Aron announced that AMC Theatres Distribution would release “Renaissance: A Film by Beyoncé” globally on December 1. The CEO also hinted at the possibility of more big-name concert films in the future.
Market Performance
AMC’s stock has seen a decline of 71.9% in 2023, contrasting with the S&P 500 index’s gain of 14.2%. Despite this setback, the strong Q3 results provide a glimmer of hope for the company and the overall industry.
