Television broadcasting and production company AMC Networks (NASDAQ:AMCX) will be announcing earnings results this Thursday morning. Here’s what to look for.
AMC Networks met analysts’ revenue expectations last quarter, reporting revenues of $542.1 million, down 2.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is AMC Networks a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AMC Networks’s revenue to decline 7.4% year on year, a further deceleration from the 4.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AMC Networks has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AMC Networks’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Delta reported revenues up 18.7%, topping estimates by 3.9%. AMC Entertainment traded up 13.4% following the results while Delta was down 3.2%.
Read our full analysis of AMC Entertainment’s results here and Delta’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. AMC Networks is up 2.2% during the same time and is heading into earnings with an average analyst price target of $7.50 (compared to the current share price of $10.27).
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