AMC Shares Jump as Company Posts Narrower-than-expected Loss in Q1

Shares of movie giant AMC were moving higher on Monday after the company posted a smaller loss than expected during the first quarter.

“Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years,” CEO Adam Aron said in a statement.

The company ended the quarter with $1.3 billion in available liquidity.

While AMC didn’t make a profit, shares were still moving over 4% in after-hours trading.

The company has been one of many to take a big blow during the pandemic after having to shutter all of its locations.

The recent release of Marvel’s “Doctor Strange in the Multiverse of Madness” is helping to kick off a steady stream of income for the movie company.

“The cumulative success of ‘Spider-Man: No Way Home,’ ‘The Batman,’ ‘Sonic the Hedgehog 2’ and this past weekend’s opening of ‘Doctor Strange in the Multiverse of Madness,’ should leave no doubt about the enduring appeal of theatrical exhibition,” said Aron.

“When Hollywood releases films that moviegoers want to see, people flock to cinemas in huge numbers to watch movies where they were designed to be seen, in theatres, on the big screen.”

While “No Way Home” and “The Batman” had solid runs in theaters and AMC saw nearly 40 million visitors during the quarter, revenues collected during the period did not outweigh the nearly $1 billion AMC spent on operating expenses and rent unfortunately.

AMC reported a net loss of $337.4 million, or 65 cents a share, compared to a loss of $567.2 million, or $1.42 per share, a year ago.

Excluding items, the company lost 52 cents per share, a narrower loss than the 63 cents analysts had expected the company to lose during the quarter, according to a survey from Refinitiv.

Revenue jumped to $785.7 million from $148.3 million last year, and topped the $743 million analysts had expected.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.