Cinemark Holdings Inc. (NYSE:CNK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Cinemark Holdings Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 24.32% to $0.28 in the quarter versus EPS of $0.37 in the year-earlier quarter.
Revenue: Decreased 5.36% to $547.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cinemark Holdings Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $550.39 million.
Quoting Management: “Cinemark’s worldwide box office results outperformed the North American industry box office for Q1 2013 by approximately 600 basis points, and has now outperformed the industry for 15 out of the past 16 consecutive quarters on a currency adjusted basis,” stated Tim Warner, Cinemark’s Chief Executive Officer. “Our international segment reported admissions revenue growth of 7.1% this quarter, reiterating the long term growth opportunity provided by this segment.”
Key Stats (on next page)…
Revenue decreased 10.42% from $611.53 million in the previous quarter. EPS increased 3.7% from $0.27 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.59 to a profit $0.58. For the current year, the average estimate has moved down from a profit of $1.87 to a profit of $1.77 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)