AMC Networks's stock jumps on Q1 results, boosted by streaming strength

By James Rogers

AMC Networks's stock rose 7.3% Tuesday after the TV network and streaming services company's first-quarter results beat analysts' top and bottom line expectations, boosted by streaming revenue.

AMC Networks Inc.'s stock rose 7.3% Tuesday after the TV network and streaming services company's first-quarter results beat analysts' top and bottom line expectations, boosted by streaming revenue.

The company reported net income of $103.6 million, or earnings of $2.36 a share, compared with net income of $104.2 million, or earnings of $2.38 a share in the same period last year.

Adjusted EPS came to $2.62 a share, above the FactSet consensus estimate of $1.87. AMC Networks's (AMCX) first-quarter revenue was $717.5 million, up from $712.2 million in the same period last year. Analysts surveyed by FactSet were looking for revenue of $697 million. The company's streaming subscribers grew 22% from the prior year to 11.5 million subscribers at the end of March, fueling a 29% increase in streaming revenue.

"While we reevaluate the pathways to content monetization, we are strategically reducing costs and streamlining our organization," said AMC Networks CEO Kristin Dolan, in a statement. "These efforts contributed to a first quarter with strong margins and increased streaming revenue as we prioritized higher-value subscribers for our streaming portfolio."

Related: AMC Networks stock surges after profit more than doubles expectations

AMC Networks bonds are being traded heavily on Monday, according to data solutions company BondCliQ. Trading volume of the three bonds, which mature, respectively, in 2024, 2025, and 2029, is 29 million.

The high-yield bonds are rated Ba3 by Moody's and BB- by S&P. On Monday, the 2024 bond is yielding just over 6%, the 2025 bond is yielding 8.75% and the 2029 bond is yielding around 12.3%, according to BondCliQ. The 2024, 2025, and 2029 bonds are trading, respectively, at 99 cents, 92.5 cents, and 66 cents on the dollar.

AMC Networks' stock has risen 4.6% in 2023, compared with the S&P 500 index's gain of 7.5%.

Of nine analysts surveyed by FactSet, six have a hold rating and three have a sell rating for AMC Networks.

-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

05-09-23 1438ET

Copyright (c) 2023 Dow Jones & Company, Inc.