AMC Entertainment’s Q4 2016 earnings appear to have exceeded Wall Street expectations according to a sneak peak at some of the numbers that the exhibition company offered this morning ahead of the formal release scheduled for February 28.
The No. 1 theater chain says it expects to report between $3.226 billion and $3.236 billion in full year revenues — ahead of the consensus forecast for $3.12 billion.
And earnings per share for the full year will range between $1.13 and $1.21, ahead of the consensus forecast for $1.00.
Net earnings will be between $112 million and $120 million, up from $104 million in 2015.
The results include 32 days of ownership of UK-based Odeon & UCI Cinemas, which AMC bought on November 30, as well as 11 days of Carmike Cinemas, bought December 21.
The numbers also reflect an industry-wide 4% drop in domestic box office revenues which AMC says was “impacted by challenging comparisons related to last year’s opening of the largest grossing film of all time, Star Wars: The Force Awakens.”
The results “were likely driven by higher than expected attendance” as well as “modestly lower aggregate expenses,” Stifel Reaearch’s Benjamin Mogil says.
AMC’s numbers do not include any results for Nordic Cinema Group. The Wanda Group-owned exhibition giant agreed this month to buy the Scandinavian chain for about $929 million. AMC says it expects that deal to close “before June 30, 2016 and is conditional upon antitrust clearance by the European Commission.