AMC Entertainment on track to extend losses for seventh straight session

Seeking Alpha News (Wed, 02-Apr 3:18 PM)

AMC Entertainment (NYSE:AMC) continued to bleed for the seventh consecutive session as its shares declined 2.16% to trade at $2.72 on Friday afternoon.

Over the past six sessions, AMC shares lost over 9%. On Wednesday, they closed 3.14% lower at $2.78.

On a YTD basis, shares of movie theatre chain have declined over 30% while in the past year, it has seen a fall of 10%.

Looking at Seeking Alpha’s quant rating, the stock has a Hold rating with a score of 2.68 out of 5. AMC has been rated a D for profitability and a D+ for valuation. Seeking Alpha as well and Wall Street analysts were also cautious about the company and recommended to Hold the stock. 

In March, financial services firm Wedbush said that it expects the North American box office to grow by at least 7% in 2025, with double-digit increases in the second and final quarters. Moreover, they’ve projected a growth of over 9% for 2026. But this has not helped in improving investors’ sentiment.

Seeking Alpha analyst Bill Maurer highlighted in an article earlier this week that AMC continues to face severe financial challenges post pandemic, including significant cash burn, high debt, and major dilution issues. The disappointing Q1 domestic box office results have further heightened concerns about the company's future revenue growth and cash flow, he said.

“While there has been a lot of optimism about the movie theater business this year, Q1 has gotten off to a tough start thanks to a dismal March. AMC Entertainment needs some strong growth in movie grosses to attempt to get its cash flow situation back to breakeven. The company started this year with large deficits in its working capital and shareholder's equity balances while trying to reduce a large debt pile,” Maurer added.