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AMC shares plunge following earnings warning

Published 08/02/2017, 02:49 PM
© Reuters.  AMC shares plunge following earnings warning
AMC
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Investing.com - AMC Entertainment Holdings Inc (NYSE:AMC) shares tanked on Wednesday after the company unveiled its expectations for a large second quarter loss while the company said it would embark on a cost reduction plan. The company added that the tough times will persist and that it will face a "very challenging third quarter.”

For the second quarter, the company is expecting a loss of $1.34 to $1.36 per share, well above the 1 cent per share loss analysts polled by Thomson Reuters are expecting. The company forecasts revenue of $1.200 billion to $1.204 billion, vs. $1.249 billion expected.

For the full year, AMC is expecting a per share loss of 97 cents to $1.17 vs. expected earnings of 60 cents. Revenue should come in in the range of $5.10 billion to $5.23 billion. Analysts are expecting $5.27 billion in full-year earnings

AMC attributed the disappointing forecast to a tough environment and said that it would implement some cost-saving and revenue-enhancing measures in order to survive the climate. The downgraded results are a result of challenging times in the North American market, while the company noted that it is seeing solid growth in Europe.

AMC will release its second quarter financial results on August 7. Shares plunged to an all-time low of $15.15 on Wednesday.

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