AMC shares jump 10% on narrower-than-expected Q2 loss

AMC Entertainment Holdings Inc (NYSE: AMC) said on Monday lost less money than analysts had anticipated in the fiscal second quarter. Shares of the company were about 10% in after-hours trading.

Q2 financial performance

According to Refinitiv, experts had forecast the company to post $382.1 million of revenue in the second quarter. Their estimate for per-share loss stood at 91 cents. In its earnings report on Monday, the cinema chain topped both estimates posting a higher $444.7 million of revenue and a narrower 71 cents of loss per share.

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The Kansas-based company reported $344 million of net loss in the recent quarter versus the year-ago figure of $561.2 million.

CEO Adam Aron’s remarks

Commenting on the financial update on Monday, CEO Adam Aron said:

“AMC’s journey through this pandemic is not finished, and we are not yet out of the woods. However, while there are no guarantees as to what the future will bring in a still infection-impacted world, one can look ahead and envision a happy Hollywood ending to this story.”

Other notable figures

According to AMC Entertainment, its entire network comprising 593 movie theatres in the United States was now open for the public. Internationally, it was about 95% operational.

The world’s leading cinema chain turned meme stock valued its liquidity at roughly $2.0 billion as of the end of Q2. AMC intends to use this money to expand its network of theatres and upgrade the current ones with better amenities, including seating.

In Q2, AMC added two new Los Angeles locations; one at The Grove shopping complex and another at The Americana at Brand.

Stock performance

AMC Entertainment embraced retail investors earlier this year who pushed the stock from $2.0 a share at the start of the year to over $60 a share in early June. In extended trading, it is now exchanging hands at $37 a share.