AMC Reports Earnings On Friday, We Already Know About 'Sizable Cash Position' And Higher Sales - What's Next?

AMC Entertainment Holdings Inc AMC is due to report earnings on Friday, here’s what investors need to know about the stock, the numbers, and what analysts think.

By The Numbers: The movie theater chain is expected to issue a loss of 16 cents per share, on revenues of $941.93 million, according to data from Benzinga’s AMC page.

AMC's CEO Adam Aron said during the last earnings call that ticket sales were up 44% year-over-year as of Feb. 28, driven by “Avatar: The Way of Water,” “Ant-Man and the Wasp: Quantumania,” and “Creed III.”

Aron also hinted at the company’s “sizable cash position” in a tweet aimed at Robinhood Markets Inc HOOD, which experienced a technical issue leading to an incorrect banner being applied to AMC saying that the company filed for bankruptcy.

AMC is expected to report a significant reduction in outstanding debt during Q1, having raised $84.7 million in gross equity proceeds via the private sale of its AMC Preferred Equity APE units.

After reducing its liabilities by $378 million in 2022, AMC's total debt is estimated to be $548 million.

The Stock: From a technical perspective, Benzinga’s internal TA journalist, Melanie Schaffer, said the stock has been in an uptrend since April 24, with consistent higher highs and higher lows.

On May 4, AMC's shares have been trading between $5.72 and $5.98. This is part of the consistent trend of higher highs that the stock has shown since April 24, potentially indicating continued bullish momentum.

If support continues, AMC may break up above the triple top pattern. Otherwise, it could settle into a cup-and-handle pattern with a potential 17% increase toward $6.

Bearish traders hope for AMC to fall below $5, Shaffer said, negating the uptrend. AMC faces resistance at $6.33 and $7.47 and support at $5.74 and $4.31.

The Analysts: Wedbush analyst Alicia Reese on Thursday reiterated a Sell rating and set a price target of $2.00.

Citigroup in March reinstated AMC with a Sell rating and set a $1.60 price target on the stock.

Price action: Shares of AMC are trading 3.5% higher to $5.94 on Thursday at the time of publication, according to data from Benzinga pro.