According to analyst Michael Pachter at Wedbush Morgan, there are some serious problems for the movie and entertainment sector in early 2011.
Here’s Pachter’s bullet points for a preview of Q4 earnings announcements:
- Lowering estimates for Carmike Cinemas (NASDAQ:CKEC), Cinemark Holdings (NYSE:CNK), and Regal Entertainment (NYSE:RGC) due to much weaker-than-expected domestic box office receipts.
- Many of Q4’s high-profile releases were poorly received by critics and the movie-going public.
- In addition to lackluster reviews, we believe rising ticket prices also acted as a deterrent for moviegoers.
- Q4:10 faced a very difficult comparison due to Avatar and The Twilight Saga: New Moon.
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