AMC Entertainment Holdings: Is it a Buy or Sell?

AMC Entertainment (AMC) has returned -12.6% over the past month, compared to the S&P 500's +3.3% change. The Zacks Leisure and Recreation Services industry has lost 5.1%. AMC is expected to post a loss of $0.19 per share in Q1, indicating a -375% change from the year-ago quarter. The Zacks Rank is #4 (Sell) due to recent changes in earnings estimate revisions and other factors.

Title: AMC Entertainment: Mixed Performance Amid Industry Challenges

AMC Entertainment (AMC) has experienced a mixed performance over the past month, with a return of -12.6% compared to the S&P 500's +3.3% change. The Zacks Leisure and Recreation Services industry has lost 5.1% during this period. Despite these challenges, AMC reported break-even quarterly earnings per share in its latest earnings release, a significant improvement from the previous year's loss of $0.43 per share [1].

The company's earnings report, released on August 14, 2025, showed an earnings surprise of +100.00%, as it beat the Zacks Consensus Estimate of a loss of $0.04 per share. This compares favorably to the expected loss of $0.61 per share a quarter ago. Over the last four quarters, AMC has surpassed consensus EPS estimates three times [2].

AMC's revenue for the quarter ended June 2025 was $1.4 billion, surpassing the Zacks Consensus Estimate by 3.68% and representing a 32.6% increase from the year-ago quarter [2]. The company has consistently topped consensus revenue estimates over the past four quarters.

However, the Zacks Rank for AMC is currently #4 (Sell), reflecting recent changes in earnings estimate revisions and other factors. The industry's overall performance has been challenging, with the Zacks Leisure and Recreation Services industry ranked in the bottom 27% of the 250 plus Zacks industries [3].

AMC's stock price has been volatile, losing about 26.4% since the beginning of the year, despite the recent earnings beat. The company's ability to navigate the current economic landscape and industry challenges will be crucial for its future performance. Investors should closely monitor management's commentary on the earnings call and future earnings expectations [2].

References
[1] https://ca.investing.com/news/analyst-ratings/amc-entertainment-stock-holds-steady-as-benchmark-reiterates-hold-rating-93CH-4149984
[2] https://www.nasdaq.com/articles/amc-entertainment-amc-reports-break-even-earnings-q2
[3] https://sg.finance.yahoo.com/news/earnings-live-micron-raises-forecast-amc-stock-pops-mondaycom-stock-tanks-113339776.html