Investing

Earnings Previews: AMC, New Oriental Education and 3 Cathie Wood Picks

More than a third of earnings reports released Friday morning failed to meet consensus estimates for profits, revenues or both. That is a pretty poor showing, given the high percentage of companies that are beating estimates.

There are no reports scheduled after the bell Friday, but we already have previewed five firms reporting before Monday’s opening bell: Barrick Gold, BioNTech, Dicerna, Trade Desk and Workhorse. Though not heavily followed, Dicerna and Trade Desk are included in exchange-traded funds from Cathie Wood’s ARK Investment Management.

There are no earnings reports scheduled for Friday afternoon, but here is a preview of two firms set to report quarterly results after markets close Monday and three more reporting before Tuesday’s opening bell. Three of the five are among stocks included in the ARK Invest ETFs.

AMC

For the year to date, the stock with the largest share price gain of any U.S. traded stock is AMC Entertainment Holdings Inc. (NYSE: AMC). Shares are up 1,480% in 2021, but since a recent peak in mid-June, shares have dropped by about 45%, from almost $61 a share to about $33.50. The expected surge in theater attendance during the summer has been stymied by the Delta variant of the coronavirus and the simultaneous release of new movies to theaters and on streaming services.

AMC gets very little attention from brokerages. Only nine surveyed analysts cover the stock, and none rates the shares higher than a Hold. Three give the stock a Sell rating and another has slapped on a Strong Sell rating. The stock traded Friday morning at around $32.20, nearly 10 times the median price target of $3.70, and essentially double the high price target of $16.

Revenue is forecast to reach $382.11 million in the second quarter, up more than 150% sequentially and up about 20 times the $18.9 million revenue total for the second quarter of last year. AMC is expected to post an adjusted loss per share of $0.96, compared to the prior quarter’s loss of $1.42. In the same quarter last year, the company posted a loss per share of $5.36. For the full year, analysts are forecasting a loss per share of $3.37 compared to last year’s loss of $16.15 per share. Revenue is forecast to double to $2.49 billion.

AMC is not expected to post a profit in 2021, 2022 or 2023. The enterprise value-to-sales multiple for 2021 is 10.3, for 2022 is 5.4 and for 2023 is 5.0. The stock’s 52-week trading range is $1.91 to $72.62. The company does not pay a dividend.