AMC Reports Q2 Top-Line Miss Despite Strong Streaming Growth; Lowering FVE to $51

AMC reported a weak second quarter with revenue falling short of FactSet consensus estimates. Even with soft revenue and negative free cash flow in the first half, management reiterated full-year guidance of low-single-digit top-line growth and $100 million in free cash flow. Despite the miss, the focus on niche streaming platforms continues to pay dividends, as AMC’s services added 1.3 million new customers to end the quarter with 10.8 million subscribers. We are lowering our fair value estimate to $51 from $58 to account for slower ad revenue growth in the U.S. and lower overall international growth.