Shares of AMC Entertainment Holdings Inc. rose as much as 10% on Friday from Thursday's close, despite the company reporting softer-than-expected revenue and a slightly wider loss in the second quarter than Wall Street was expecting. Investors seemed to shrug off the earnings miss, after AMC issued a profit warning earlier in the week and shares tanked as much as 27%. They focused on the company's $100 million buyback announcement and the cinema chain's plans to stabilize the business in the face of volatile box office returns. AMC Chief Executive Adam Aron said, "I also plan individually to buy AMC stock on the open market with personal monies within the next 60 days." In the company's quarterly report Aron laid out plans for confronting the challenges ahead, including streamlining operating costs and seeking revenue enhancement opportunities. AMC management is also looking to reduce capital expenditures by $100 million in the latter half of 2017 and an additional $100 million in 2018, while identifying roughly $400 million in non-strategic assets that could be monetized over the next two years. AMC is doubling down on its investment in concessions and premium recliner seating, and is positive on the industry's future and the company's position in it. "We remain optimistic about our ability to deliver meaningful value to our shareholders," Aron said in a statement. "Consumer demand to go to the movies was robust as 2017 started out in the first quarter. And just ahead of us is a strong fourth quarter film slate, that creates the opportunity to lessen the angst surrounding box office weakness industry-wide in the second and third quarters of 2017." Shares of AMC have lost more than 52% in the year so far, while the S&P 500 index has gained nearly 11%.
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