AMC Entertainment Stock Is Tumbling Monday: What's Going On?

AMC Entertainment Holdings Inc AMC shares are trading lower Monday following the company’s second-quarter financial results. Here’s what you need to know.

What To Know: After the market close on Friday, AMC reported second-quarter revenue of $1.03 billion, in line with analyst estimates, according to Benzinga Pro. The company also reported a second-quarter adjusted loss of 43 cents per share.

Adjusted EBITDA came in at $29.4 million in the quarter. The company noted that it achieved its highest adjusted EBITDA in company history in June. AMC ended the quarter with $770.3 million in cash and cash equivalents.

"As expected, the second quarter started slowly with the box office adversely impacted by the 2023 Hollywood writers and actors strikes. However, the quarter finished with incredible strength powered by the success of Disney's INSIDE OUT 2, which is now the highest grossing animated movie of all time. AMC saw a remarkable contrast between the early quarter with a dearth of movie releases and the end of the quarter with a record setting movie delighting audiences in our theatres,” said Adam Aron, chairman and CEO of AMC.

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Why It Matters: Aron stressed that AMC operated as if it were “two different companies” in the beginning of the quarter versus the end of the quarter. The strong adjusted EBITDA momentum from June continued into July, Aron said.

"With a long list of blockbuster movie titles opening in theatres during the remainder of the year and into 2025 and 2026, the industry-wide box office now appears to us to be poised for sustained growth. Looking ahead, we believe that bodes ever so well for the increasing cash generation potential from AMC's movie theatres both at home and abroad,” Aron said.

AMC noted that it completed several financing transactions during the quarter that took up $2.45 billion of its debt, extending maturities to 2029 and 2030. The company said the stage is now set for “continued recovery” at AMC.

Following the print, Wedbush analyst Alicia Reese reiterated AMC with a Neutral rating and maintained a price target of $4.

AMC Price Action: AMC shares were down 14% at $4.25 at the time of publication, according to Benzinga Pro.

Photo: Paul Sableman from Flickr.