AMC stock surrenders post-earnings gains

AMC shares gained as much as 9.94%

AMC Entertainment Holdings Inc. shares on Tuesday gave up the big gains that came after the company delivered quarterly results that topped Wall Street expectations.   

Shares of the Leawood, Kansas-based movie-theater chain climbed by as much as 9.94% to $37.16 apiece before retreating to nearly unchanged. 

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 12.78 -0.75 -5.54%

"The second quarter of 2021 was transformational for AMC," said CEO Adam Aron in a statement accompanying his company’s second-quarter results.

AMC on Monday evening reported its quarterly loss narrowed to $344 million, or 71 cents per share, from $561.4 million the prior year. Revenue was up 2,252% to $444.7 million. 

The improvement came as AMC had all 593 domestic theaters and 335 international theaters, representing about 95% of overseas locations. More than 22 million customers attended theaters during the quarter, up from 100,000 during the same period last year. 

The return to the box office and a number of stock and debt offerings helped AMC raise its cash pile to $1.81 billion. The company last week raised ticket prices by about 5%, which is about a 50 cent per ticket increase, on average. 

Still, Aron warns AMC is "not yet out of the woods" despite shares soaring 1,494% this year through Monday. 

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AMC narrowly avoided a bankruptcy filing in January after receiving a $917 million infusion from investors. At the time, shares bottomed out at $2.01 apiece. 

"While there are no guarantees as to what the future will bring in a still infection-impacted world, one can look ahead and envision a happy Hollywood ending to this story," Aron said.