Cinemark Holdings Earnings Cheat Sheet: Streak of Two Straight Profit Declines Snapped

Cinemark Holdings, Inc (NASDAQ:CNK) reported its results for the second quarter. A holding Company, together with its subsidiaries is engaged in the motion picture exhibition industry with theatres in the U.S., Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama & Colombia.

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Cinemark Holdings, Inc Earnings Cheat Sheet for the Second Quarter

Results: Net income for Cinemark Holdings, Inc rose to $40.4 million (35 cents per share) vs. $39.7 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 1.8% from the year earlier quarter.

Revenue: Rose 15.1% to $620.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CNK fell short of the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $593.6 million.

Quoting Management: “This quarter Cinemark generated its highest ever quarterly worldwide attendance and as a result we achieved our highest ever quarterly Adjusted EBITDA. This record performance extended our domestic industry box office out-performance streak to eleven straight quarters,” stated Cinemark Chief Executive Officer Alan Stock. “Our international circuit continues to distinguish itself with attendance growth of approximately four times the US industry rate for the quarter.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 10 cents, and in the fourth quarter of the last fiscal year, it was ahead by 10 cents.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 6.5% in the first quarter and fell 2.1% in the fourth quarter of the last fiscal year.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 28.9% while the figure dropped in the fourth quarter of the last fiscal year.

Competitors to Watch: Regal Entertainment Group (NYSE:RGC), Carmike Cinemas, Inc. (NASDAQ:CKEC), The Marcus Corporation (NYSE:MCS), and Reading Intl., Inc. (NASDAQ:RDI).

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(Source: Xignite Financials)