Cinemark Holdings Third Quarter Earnings Sneak Peek

Cinemark Holdings, Inc. (NYSE:CNK) will unveil its latest earnings on Tuesday, November 6, 2012. Cinemark Holdings is 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, and Colombia.

Cinemark Holdings, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 36 cents per share, a decline of 12.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 40 cents during the last month. Analysts are projecting profit to rise by 22.8% versus last year to $1.51.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 45 cents per share against the mean estimate of 37 cents. In the prior quarter, the company reported profit of 37 cents.

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A Look Back: In the second quarter, profit rose 27.8% to $51.6 million (45 cents a share) from $40.4 million (35 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.7% to $649.6 million from $620.6 million.

Stock Price Performance: From October 3, 2012 to October 31, 2012, the stock price rose $1.68 (7.3%), from $23.01 to $24.69. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 18, 2012, when shares rose for seven straight days, increasing 7.5% (+$1.72) over that span. It saw one of its worst periods between August 16, 2012 and August 23, 2012 when shares fell for six straight days, dropping 5.1% (-$1.22) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 2.1% in revenue from the year-earlier quarter to $626.8 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.2% in the third quarter of the last fiscal year, 2.1% in the fourth quarter of the last fiscal year and 19.8% in the first quarter before increasing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 21.3% for the last four quarters.

Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating Cinemark Holdings a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.16 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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