AMC Entertainment (AMC) shares are up in after-hours after the movie theater company beat on the top and bottom line for its second quarter.
AMC reported a loss per share of 71 cents, compared to Wall Street estimates of a loss of 94 cents per share.
Revenue climbed to $444 million for the quarter versus expectations of $382.25 million. The company's second-quarter performance is a massive increase compared to the same period last year when it brought in revenues of $19 million. The top line though is still well below the company's 2nd quarter total revenue of $1.5 billion in 2019.
AMC shares are up more than 1,500% year-to-date since becoming e a Reddit favorite among Wall Street Bets retail traders. That's when it turned into a 'meme-stock,' along with GameStop (GME), experiencing bouts of volatility since the beginning of the year.
The company has taken advantage of its soaring stock price and raising capital.
“The second quarter of 2021 was transformational for AMC," Adam Aron, Chairman and CEO of AMC said in a statement.
"We raised yet another $1.25 billion of new equity capital (before commissions and fees) in the quarter, boosting our quarter ending liquidity to more than $2 billion (including cash and undrawn revolving lines of credit) which is about double the previous highest ever such mark in AMC’s 101-year history," he continued.
Theaters have been welcoming movie-goers under social distancing guidelines, but it's unclear the impact the Delta Covid-19 variant will have on the business. A relapse or stricter measures could hinder the industry's slow recovery.
"On the core fundamentals, clearly we're seeing lower demand for movies that are coming out," Macquarie Group Senior Analyst Chad Beynon told Yahoo Finance Live.
Beynon said he is keeping an eye out on cash flow as other movie theater companies have been burning less cash, or no cash.
The company has cashed in on the meme stock frenzy, selling shares along the way. That cash could be used for acquisitions and growing the business.
“Given our scale, experience and commitment to innovation and excellence, AMC is being presented with highly attractive theatre acquisition opportunities,” CEO Adam Aron said in a company filing earlier this year.
The stock is down from its all time high of $72.62 earlier this year. But it is still trading much higher than Wall Street estimates. AMC has no analyst Buy recommendation. It has 5 Hold and 4 Sell ratings, with an average target price of $5.87. On Monday it was trading around $33 per share prior to reporting earnings.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre