AMC’s strong Q3 results lift movie theater stocks

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AMC reported positive net income for the second straight quarter after market close Wednesday

AMC Entertainment Holdings Inc.’s strong third-quarter results lifted U.S. movie theater stocks Thursday.

The movie theater chain and meme stock darling swung to profit and reported positive net income for the second straight quarter after market close Wednesday. AMC’s AMC, -1.27% stock rose 1.8% in premarket trades Thursday.Shares of rival Cinemark Holdings Inc. CNK, -3.18%, which blew past analysts’ estimates in its third-quarter results last week, rose 0.9% in premarket trades. Shares of high-end movie theater operator Imax Corp. IMAX, -0.

Speaking during the conference call to discuss the results, AMC CEO Adam Aron highlighted the impact of summer blockbusters “Barbie” and “Oppenheimer,” faith-based thriller “Sound of Freedom” as well as the latest installment of the “Mission Impossible” series. The CEO also discussed the success of Taylor Swift’s record-breaking concert film, which opened Oct. 12. “Both as distributor and exhibitor, AMC benefited handsomely,” he said, adding that AMC Theatres Distribution is following this success with the release of “Renaissance: A Film by Beyoncé,” which hits theaters globally Dec. 1. The CEO also hinted at more big-name concert films in the future.

Related: Cinemark well-positioned for postpandemic growth and could bring back dividend, one analyst says

 

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