AMC Entertainment (NYSE:AMC) stock trounced Wall Street’s expectations in the third quarter. Moviegoers hit the theaters in droves as Barbie and Oppenheimer wowed audiences. AMC attendance was up 38% from the year-ago period pushing revenue to $1.4 billion. That was 45% above last year and nearly 12% better than Wall Street’s expectation of $1.3 billion.
Even better for AMC was the $0.08 per share profit it turned in versus the $2.20 per share loss in 2022. It was also far superior to the $0.18 per share loss analysts expected. Yet AMC’s stock is actually down over 20% from where it closed before the theater chain released its results. You should be just as unimpressed with it as the market is.
“Netflix and chill” Still a Threat
Despite the dual success of “Barbenheimer,” there were few other blockbusters on the big screen this year. Year-to-date box office receipts of $7.8 billion are running almost 6% above last year, but that’s still 31% less than pre-pandemic levels.
Consumers have far more choices for entertainment available to them today. Streaming is one such avenue that is cutting into theater attendance. Despite being a day-and-date release on the Peacock streaming service, Five Nights at Freddy’s has become a breakout hit. Yet it is the exception rather than the rule.
Barbie earned $1.4 billion at the global box office, a nice return on a $145 million production budget. Oppenheimer made almost $1 billion on a $100 million budget. The Super Mario Bros movie, released in April, is the only other movie to have earned over $1 billion this year.
AMC also needs to contend with superhero fatigue. Disney‘s (NYSE:DIS) Marvel Cinematic Universe has lost all momentum. The Marvels just opened to the worst first-weekend box office…
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