Motion picture exhibitor Cinemark Holdings, Inc. (CNK) reported mixed results for the quarter ended June 30, 2021. Following the news, shares of the company gained 1.9% in Friday’s trading session. Moreover, it added to its gains slightly to close at $15.65 in extended trade.
Cinemark posted quarterly revenues of $294.7 million, up from $8.97 million reported in the same quarter last year. The company surpassed the Street’s estimate of $262.75 million. Notably, all business segments witnessed a sizeable growth in revenues from last year, including admissions revenue, which stood at $153.5 million compared to a mere $37 million last year.
The company reported a loss per share of $1.19 versus a loss of $1.45 per share reported last year. However, the figure missed the consensus estimate of a loss of $1.07 per share.
For the second quarter, the company reported an average ticket price of $8.04, while concession revenues per patron stood at $5.75.
The CEO of Cinemark, Mark Zoradi, said, “For Cinemark, the second quarter improved so materially that we were able to substantially reduce our net loss during the quarter and our domestic operations delivered positive Adjusted EBITDA for the first time since our theaters were forced to temporarily shut down last year.” (See Cinemark stock chart on TipRanks)
Three days ago, Barrington analyst James Goss reiterated a Buy rating on the stock with a price target of $26. The analyst’s price target implies 66.4% upside potential from current levels.
The Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 3 Buys, 1 Hold and 1 Sell. The average Cinemark price target of $25 implies that the stock has 60% upside potential from current levels.
Cinemark scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the market expectations. Shares have gained 41.6% over the past year.
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