Cinemark (NYSE:CNK) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Cinemark (NYSE:CNK) released its earnings results on Tuesday. The company reported $1.04 EPS for the quarter, beating analysts’ consensus estimates of $0.98 by $0.06, Zacks reports. Cinemark had a return on equity of 50.94% and a net margin of 6.44%. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.04 billion. During the same quarter last year, the business posted $0.40 EPS. The firm’s revenue for the quarter 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 Up 1.5%

Shares of Cinemark stock traded up $0.57 during midday trading on Tuesday, hitting $39.32. The company had a trading volume of 836,698 shares, compared to its average volume of 2,314,480. The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.81 and a current ratio of 0.84. The stock has a market capitalization of $4.56 billion, a P/E ratio of 23.27 and a beta of 1.07. The company has a 50 day moving average of $36.97 and a 200 day moving average of $31.35. Cinemark has a 52-week low of $21.60 and a 52-week high of $40.53.

Cinemark Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Wednesday, August 26th were paid a $0.09 dividend. The ex-dividend date was Wednesday, August 26th. This represents a $0.36 annualized dividend and a dividend yield of 0.9%. Cinemark’s dividend payout ratio is presently 21.30%.

Analysts Set New Price Targets

Several brokerages recently weighed in on CNK. Barrington Research set a $42.00 price target on Cinemark in a research note on Thursday, July 30th. Moffett Nathanson reissued a “buy” rating and set a $40.00 price objective on shares of Cinemark in a research report on Thursday, July 30th. Wall Street Zen cut shares of Cinemark from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 29th. Roth Capital restated a “buy” rating and set a $45.00 target price on shares of Cinemark in a report on Friday, October 23rd. Finally, Zacks Research raised shares of Cinemark from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $38.79.

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.