Cinemark (NYSE:CNK – Get Free Report) released its earnings results on Tuesday. The company reported $1.04 EPS for the quarter, topping the consensus estimate of $0.98 by $0.06, Zacks reports. Cinemark had a net margin of 8.13% and a return on equity of 60.04%. The firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the previous year, the firm earned $0.40 earnings per share. The company’s quarterly revenue was up 23.5% compared to the same quarter last year.
Here are the key takeaways from Cinemark’s conference call:
- Record third-quarter performance: Worldwide revenue reached $1.1 billion and adjusted EBITDA rose to $268 million, while adjusted EBITDA margin expanded 460 basis points year over year. Admissions, concessions, concession per caps, and premium-amenity sales all reached records.
- Cinemark remains optimistic about industry growth, citing a stronger and more consistent film-release schedule, sustained consumer interest in theatrical moviegoing, expanding theatrical windows, and increased participation from studios and streaming companies such as Amazon, Apple, and Netflix.
- Premium formats continued to gain traction, with premium-format box office up 50% and representing 18% of total box office; management sees attractive returns and potential to accelerate investments in premium screens, food-and-beverage infrastructure, and theater enhancements.
- The company’s balance sheet provides flexibility for growth investments and shareholder returns, with net leverage below its 2x–3x target range and cash higher than usual. Management is evaluating additional buybacks, dividends, new builds, and capital expenditures that could exceed the historical $250 million normalized range.
- Management expects some market-share variability in the fourth quarter because of a highly concentrated holiday slate and potential capacity constraints, while inflation in concession costs, wages, utilities, and maintenance will continue to pressure expenses despite productivity and pricing initiatives.
Cinemark Stock Down 1.1%
Shares of NYSE CNK traded down $0.44 during mid-day trading on Thursday, reaching $39.94. 1,481,347 shares of the company were exchanged, compared to its average volume of 2,322,976. Cinemark has a 1 year low of $21.60 and a 1 year high of $41.55. The firm has a 50-day moving average of $37.04 and a 200 day moving average of $31.50. The stock has a market cap of $4.63 billion, a price-to-earnings ratio of 17.11 and a beta of 1.07. The company has a quick ratio of 0.81, a current ratio of 0.84 and a debt-to-equity ratio of 3.01.
Cinemark Dividend Announcement
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Wednesday, August 26th were paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Wednesday, August 26th. Cinemark’s dividend payout ratio is 21.30%.
Analyst Ratings Changes
CNK has been the topic of several research analyst reports. Zacks Research upgraded shares of Cinemark from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 13th. Wedbush raised their price objective on Cinemark from $45.00 to $46.00 and gave the company an “outperform” rating in a research report on Wednesday. The Goldman Sachs Group upgraded Cinemark from a “sell” rating to a “neutral” rating and raised their price objective for the company from $23.00 to $30.00 in a research report on Wednesday, July 8th. Wall Street Zen cut Cinemark from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 29th. Finally, Morgan Stanley boosted their target price on Cinemark from $40.00 to $45.00 and gave the stock an “equal weight” rating in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Cinemark currently has a consensus rating of “Moderate Buy” and a consensus price target of $39.57.
Check Out Our Latest Research Report on CNK
About Cinemark
Cinemark Holdings, Inc (NYSE: CNK) is a leading motion picture exhibition company that operates movie theaters in the United States and Latin America. Through its Cinemark and Century theater brands, the company provides audiences with theatrical entertainment, including first-run films, premium large-format presentations and enhanced viewing experiences.
Cinemark’s theaters generate revenue primarily through ticket sales and food and beverage concessions. Its offerings may include reserved seating, luxury reclining seats, Cinemark XD premium auditoriums, online and mobile ticketing, and loyalty programs such as Cinemark Movie Rewards.
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