AMC Entertainment Holdings Inc. shares on Tuesday gave up the big gains that came after the company delivered quarterly results that topped Wall Street expectations.
Shares of the Leawood, Kansas-based movie-theater chain climbed by as much as 9.94% to $37.16 apiece before retreating to nearly unchanged.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||40.84||+0.53||+1.31%|
“The second quarter of 2021 was transformational for AMC,” said CEO Adam Aron in a statement accompanying his company’s second-quarter results.
AMC on Monday evening reported its quarterly loss narrowed to $344 million, or 71 cents per share, from $561.4 million the prior year. Revenue was up 2,252% to $444.7 million.
The improvement came as AMC had all 593 domestic theaters and 335 international theaters, representing about 95% of overseas locations. More than 22 million customers attended theaters during the quarter, up from 100,000 during the same period last year.
The return to the box office and a number of stock and debt offerings helped AMC raise its cash pile to $1.81 billion. The company last week raised ticket prices by about 5%, which is about a 50 cent per ticket increase, on average.
Still, Aron warns AMC is “not yet out of the woods” despite shares soaring 1,494% this year through Monday.
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AMC narrowly avoided a bankruptcy filing in January after receiving a $917 million infusion from investors. At the time, shares bottomed out at $2.01 apiece.
“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,” Aron said.
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