Movie theater chain Cinemark Holdings, Inc. (NYSE:CNK) has reported better-than-expected results for the quarter ended December 31, 2021. Strong growth in revenues drove the overall results of the company.
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However, following the results, shares of the company declined more than 1.2% to close at $17.51 in Friday’s extended trading session.
Revenue & Earnings
Cinemark reported quarterly revenues of $666.7 million, up 579% year-over-year. The figure also surpassed the consensus estimate of $597.75 million. Admissions revenue and concessions revenue grew 602.5% and 689%, respectively, from the prior-year period and drove the overall growth in revenues for the company.
The company reported quarterly earnings of $0.05 per share, which compares favorably with a loss of $2.03 per share reported in the year-ago quarter. Moreover, the figure comfortably surpassed the consensus estimate of a loss of $0.14 per share.
Other Operating Metrics
Theatre attendance witnessed a massive increase of 628.8% from the same quarter last year to 48.1 million. Concession revenue per patron also grew 8.6% year-over-year to $5.16.
However, average ticket price witnessed a year-over-year decline of 3.4% from the previous year to $7.17.
CEO Comments
The CEO of Cinemark, Sean Gamble, said, “The theatrical exhibition industry, and our company, made huge strides recovering from the ongoing effects of the pandemic throughout 2021, culminating in an exceptional fourth quarter. During the quarter, Cinemark surpassed North American industry box office performance by more than 700 basis points when comparing results against 4Q19. Our Latin American admissions also over-indexed their corresponding industry benchmarks by a similar degree.”
Stock Rating
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average Cinemark price target of $24.50 implies that the stock has upside potential of 38.3% from current levels. Shares have declined 25.9% over the past year.
Negative Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on CNK, as 4.5% of portfolios tracked by TipRanks decreased their exposure to CNK stock over the past 30 days.
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