AMC's stock registers biggest decline in a month after preliminary first-quarter results

By James Rogers

Movie-theater chain and original meme stock AMC announced preliminary first-quarter results late Friday

Shares of AMC Entertainment Holdings Inc. ended Monday's session down 11.1%, with the stock registering its biggest decline since April 1, when it fell 15.6%.

In its preliminary first-quarter results late Friday, AMC (AMC) cited the effects of last year's Hollywood writers and actors strikes but flagged a narrowed quarterly loss. "As predicted, the box office in the first quarter was adversely impacted by the 2023 Hollywood writers and actors strikes," AMC Chief Executive Adam Aron said in a statement. "Nonetheless, AMC outperformed."

The movie-theater chain and original meme stock exceeded consensus estimates for revenue; adjusted earnings before interest, taxes, depreciation and amortization; net income; and diluted EPS, Aron added. "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."

Related: AMC takes a hit from Hollywood strikes but narrows quarterly loss

AMC shares, which hit a series of record lows earlier this year, have fallen 50.5% in 2024, compared with the S&P 500 index's SPX gain of 7.3%. The stock, which closed at $3.03 on Monday, registered its lowest close since April 18, when it closed at $2.92, according to Dow Jones Market Data.

The company's debt burden is also in the spotlight. Last week, Bloomberg reported that a lender group to AMC advised by law firm Gibson Dunn & Crutcher has made a proposal to the company that would push back its near-term debt maturities.

In a note released Monday, analyst firm Wedbush said the move could be important as AMC looks to tackle its $4.5 billion in debt, $2.9 billion of which is coming due in 2026. "This is a key initiative as AMC looks to clean up its balance sheet in the coming years," wrote Wedbush analyst Alicia Reese.

Related: AMC debt extension would be 'key' as company looks to clean up balance sheet, says Wedbush

AMC and Gibson Dunn & Crutcher have not yet responded to a request for comment.

-James Rogers

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-29-24 1723ET

Copyright (c) 2024 Dow Jones & Company, Inc.