Cinemark Holdings Inc. experienced a 3% surge in its stock early on Friday, propelled by the cinema operator's fourth-quarter revenue surpassing expectations, which mitigated concerns over a broader-than-anticipated loss.
The Plano, Texas-based company, Cinemark (CNK), reported a net loss of $18 million, equivalent to 15 cents per share, for the quarter. This marks an improvement from the year-ago period when the company incurred a loss of $99.3 million, or 82 cents per share. Meanwhile, revenue demonstrated a notable increase, rising by 6.5% to reach $638.9 million.
In contrast to the FactSet consensus of a 7-cent loss and revenue of $620.0 million, Cinemark's performance exceeded expectations. The company concluded the quarter with a total of 5,719 screens across the United States and future plans to inaugurate five new theaters and incorporate 43 additional screens within the next two years.
Cinemark's Chief Executive, Sean Gamble, expressed optimism about the company's prospects, anticipating benefits from the ongoing recovery in the industry following the pandemic-induced downturn.
The year 2023 witnessed a cinematic phenomenon known as "Barbenheimer," wherein moviegoers endeavored to watch the two major summer blockbusters, "Barbie" and "Oppenheimer," on the same day after their respective releases. This contributed to "Barbie" grossing over $1 billion by August, a milestone that marked director Greta Gerwig as the first female director to achieve such success.
Cinemark reported an impressive count of over 40 million moviegoers at its theaters during the quarter and a substantial 210 million for the entire year of 2023.
Furthermore, the company achieved record-high food and beverage per capita of $4.68 for the year. Despite a 25% reduction in attendance compared to 2019, concession revenue surpassed the previous year's by 3%.
Admissions revenue experienced a 5.8% rise, reaching $322.4 million in the quarter, while concession revenue saw an even more significant increase, rising by 7.7% to $243.0 million.
Over the past 12 months, Cinemark's stock has exhibited a remarkable 40% gain, outperforming the S&P 500, which recorded a 23% increase during the same period. This positive trajectory reflects investors' confidence in the company's resilience and ability to navigate challenges within the cinema industry.
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