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AMC Entertainment regroups as investors cheer buyback

Published 08/04/2017, 04:22 PM
© Reuters.  AMC Entertainment regroups as investors cheer buyback
AMC
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Investing.com - On Friday, AMC Entertainment Holdings Inc (NYSE:AMC) shares recovered some of the sharp losses they experienced earlier in the week as the company warned that its second quarter results wouldn’t meet expectations.

AMC issued this alert on Wednesday, and shares plunged 27% to a record low. But, on Friday when the actual results were released AMC’s shares clawed back and gained 10% as investors were encouraged by the company's efforts to get the business back on track.

AMC lost $176.5 million in the quarter, or $1.35 per share, after net income of $24 million, or 24 cents per share during the same period a year ago. The loss was a penny more than analysts were expecting. Revenue for the quarter was $1.20 billion, up from $764 million a year ago, but below the $1.22 billion analyst consensus.

At the same time, the company announced a planned $100 million stock buyback. AMC Chief Executive Adam Aron said he would personally participate in the stock buyback.

AMC closed Friday's session up 7.6% at $16.25.

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