Earnings Previews: AMC Entertainment, HP, Rivian

Rivian charging
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In the first half-hour of trading on Monday, the Dow Jones industrials were up 0.70%, the S&P 500 up 0.77% and the Nasdaq up 1.00%. The monthly report on personal consumption expenditures (PCE) came in hotter than expected, raising the odds for more Fed tightening. Monday, investors may be buying again after Friday’s big dip.

Before U.S. markets opened on Monday, Fisker, as expected, posted a big fourth-quarter loss on revenue of just $310,000. Production and sales forecasts for 2023 remained unchanged at 42,000 units, and the company has enough cash to get through the year. It may even post positive EBITDA. The stock traded up 24.3%.

Li Auto posted far better profits than analysts expected but missed slightly on revenue. The company expects to deliver 52,000 to 55,000 units this year, a year-over-year increase of up to 73%. The stock traded up 2.8% early Monday.

After U.S. markets close on Monday, Occidental Petroleum, Range Resources and Zoom Video will report quarterly results. Then Norwegian Cruise Lines and Target are on deck to do the same first thing Tuesday morning.

Here is a look at what to expect when the following three companies report results before U.S. markets close on Tuesday.

AMC Entertainment

Shares of AMC Entertainment Holdings Inc. (NYSE: AMC) have dropped by about 65% over the past 12 months, including a year-to-date gain of some 52%. While AMC’s numbers are expected to improve year over year, the bigger news is the company’s special shareholders’ meeting coming next month. AMC wants to increase its authorized share count and has come up with a novel approach after trying and failing to get shareholder support last year. Preferred shares (NYSE: APE), issued last August, will be overwhelmingly voted in favor of increasing the number of authorized shares of common stock.

AMC is not an analyst’s favorite. Just four brokerages cover the stock, and none has a Buy or Strong Buy rating on it. Three have rated the shares at Hold. At a recent price of around $6.20 a share, the stock trades more than three times higher than its median price target of $2.00. At the high price target of $7.50, the upside potential is 21%.

Fourth-quarter revenue is forecast at $1.05 billion, which would be up 8.8% sequentially but down 10.3% year over year. Analysts expect AMC to report a loss per share in the quarter of $0.21 worse than the prior quarter’s loss of $0.20 per share, and worse than last year’s quarterly loss of $0.11 per share. For the full 2022 fiscal year, AMC is expected to post a loss per share of $1.13, compared with last year’s loss of $2.50 per share. Revenue is forecast to rise by 57.2% to $3.97 billion.

AMC is not expected to post a profit in 2022, 2023 or 2024. The enterprise value to sales multiple is expected to be 3.2 in 2022. Based on average estimated sales of $4.52 billion and $4.85 billion for 2023 and 2024, respectively, the multiple is 2.8 for 2023 and 2.6 for 2024. The stock’s 52-week trading range is $3.77 to $34.33. Total shareholder return for the past year was negative 42.92%.


Personal computer and printer maker HP Inc. (NYSE: HPQ) has seen more than 15% drop from its share price over the past 12 months. The stock has gained 8.8% so far in 2023 but is still down about 25% from its 52-week high last April. Still, the company has boosted its dividend, and that is why HP continues to attract investors. PC shipments have been forecast to drop by 7% this year, a significant improvement from 2022’s drop of 16%. HP and competitors like Dell and Lenovo will be trying to bring inventory levels into line with sales.
Analysts remain cautious on HP stock. Of 17 brokerages covering it, 12 have a Hold rating, while just one has a Buy rating. At a share price of around $29.20, the upside potential based on a median price target of $30.00 is 2.7%. At the high price target of $33.00, the upside potential is 13%.

Revenue in the company’s first quarter of fiscal 2023 is forecast to come in at $14.17 billion, down 4.3% sequentially and by 16.8% year over year. Adjusted EPS are forecast at $0.75, down 12% sequentially and 31.8% lower year over year. For the full fiscal year ending in October, analysts anticipate EPS of $3.29, down 19.4%, on sales of $56.8 billion, down 9.8%.

HP stock trades at 8.9 times expected 2023 EPS, 8.1 times estimated 2024 earnings of $3.63 and 7.6 times estimated 2025 earnings of $3.83. per share. The stock’s 52-week range is $24.07 to $41.47. HP pays an annual dividend of $1.05 (yield of 3.59%). Total shareholder return for the past year is negative 12.69%.


One positive thing an investor can say about Rivian Automotive Inc. (NASDAQ: RIVN) stock last year is that it did not disappear completely. Ford, an early investor in the EV maker, has dumped its stake in the company. Another big investor, Amazon, wrote down some $2.3 billion on its investment in Rivian. Amazon has, however, taken delivery of more than 1,000 Rivian electric delivery vans since November, leaving a lot of room for the number to grow to the 100,000 vans Amazon said in 2019 it wanted from the company.

Of 20 analysts covering the stock, 14 have a Buy or Strong Buy rating and five more have a Hold rating. At a share price of around $17.30, the upside potential based on a median price target of $36.00 is 108.1%. At the high target of $63.00, the upside potential is 264.2%.

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