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AMC Theatres saw its stock surge on Tuesday morning in pre-market trading as the cinema giant reported better-than-expected fourth-quarter revenue despite the coronavirus omicron wave and touted its “strongest quarter in two years.”
AMC disclosed that revenue for the three months to Dec. 31 came to $1.17 billion, up from $162.5 million in the same period of 2020. Analysts had forecast $1.09 billion in revenue for the quarter. Shares in AMC rose by 12.5 percent to $18.07 ahead of the opening bell on the NYSE.
The company also disclosed a preliminary loss of between $194.8 million and $114.8 million, which includes an estimated non-cash assets impairment charge of $50 million-$125 million.
That compares to a loss of $946.1 million for the fourth quarter of 2020, which included a non-cash impairment charge of $466.1 million. A year ago, the cinema giant had begun reopening theaters to weather the coronavirus pandemic and stay in business.
“AMC’s 2021 results improved significantly as the year progressed, and we finished the year with the strongest quarter in two years,” AMC CEO Adam Aron said in a statement. He added the company generated positive operating cash of more than $215 million during the latest quarter to get to $1.8 billion in year-end liquidity, or $1.59 billion in cash.
AMC shares have been volatile after the company used its status as a meme stock thanks to rogue retail traders on Reddit and other social media hubs to raise fresh cash at a steep market premium to ensure survival and pay down debt and interest expenses.
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