AMC takes a hit from Hollywood strikes, but narrows quarterly loss

By Claudia Assis

AMC reported preliminary first-quarter earnings late Friday

AMC Entertainment Holdings Inc. felt the impact of last year's writers' and actors' strikes in Hollywood, but the movie-theater chain still managed to narrow its quarterly loss.

AMC (AMC) reported preliminary first-quarter earnings late Friday, ahead of expectations that it would report the results early next month. The stock headed 1.5% lower in the after-hours session.

The company said it expects revenue of about $951.4 million for the quarter through March, compared with $954.4 million in the same period last year and analyst expectations of $861 million, according to FactSet.

AMC said it expects a net loss of $163.5 million, or 62 cents a share, compared with a net loss of $235.5 million, or $1.71 a share, in the year-ago period. FactSet analysts were calling for a loss of 79 cents a share.

AMC outperformed despite the strikes, Chief Executive Adam Aron said in a statement.

"While we anticipate that the second-quarter box office will continue to be affected by the 2023 Hollywood strikes, we are ebullient about the upcoming film slate, and we expect to see an increasingly strong box office as the year progresses," Aron said.

Earlier this month, Aron said it would be "inconceivable" that the movie-theater chain would file for bankruptcy despite the turmoil of recent years. He described the Hollywood strikes as a "double whammy" for the company.

Shares of AMC have dropped around 44% so far this year, contrasting with an advance of about 7% for the S&P 500 index SPX.

-Claudia Assis

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04-26-24 1759ET

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