AMC Networks (NASDAQ:AMCX) Announces Earnings Results

Key Points

• AMC Networks missed quarterly earnings expectations: It reported a loss of $0.28 per share versus the expected loss of $0.07, while revenue fell 8.8% year over year to $547.5 million.
• A Netflix licensing deal for “The Walking Dead” franchise is expected to generate $500 million in contracted fees, prompting AMC to raise its 2026 revenue guidance to $2.4 billion–$2.45 billion and forecast approximately $220 million in free cash flow.
• The stock fell 5.3% after the results, and analysts maintain a cautious outlook with a consensus “Reduce” rating and average price target of $8.50, despite management’s focus on streaming engagement and debt reduction.

AMC Networks (NASDAQ:AMCX - Get Free Report) released its earnings results on Thursday. The company reported ($0.28) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.21), FiscalAI reports. The business had revenue of $547.50 million during the quarter, compared to analysts' expectations of $555.74 million. AMC Networks had a return on equity of 8.70% and a net margin of 2.28%.The business's revenue for the quarter was down 8.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.69 EPS.

Here are the key takeaways from AMC Networks' conference call:

• The Walking Dead licensing deal with Netflix covers all seven series and 371 episodes under a five-year, co-exclusive global agreement worth $500 million in contracted fees. AMC expects approximately $200 million–$225 million of revenue recognition in both 2026 and 2027, with cash payments extending through 2031.
• AMC raised its 2026 guidance to consolidated revenue of $2.4 billion–$2.45 billion, adjusted operating income of $410 million–$420 million, and free cash flow of approximately $220 million, partly reflecting the Netflix agreement.
• Second-quarter revenue fell 9% year over year to $547 million and adjusted operating income was $46 million, while domestic subscription revenue declined 5%, affiliate revenue dropped 17%, and subscriber acquisition was below expectations in the first half.
• Management cited improving engagement and retention across streaming services despite price increases, strong digital advertising growth, and ratings gains across most linear networks, including a 21% prime-time increase at WE tv.
• AMC ended the quarter with approximately $464 million of cash, $1.3 billion of net debt, and 4.1x net leverage after paying down its remaining Term Loan A; management said leverage should peak in the second quarter and remains focused on debt reduction.

AMC Networks Stock Down 5.3%

NASDAQ:AMCX traded down $0.54 during trading hours on Thursday, reaching $9.71. The company's stock had a trading volume of 1,115,304 shares, compared to its average volume of 482,088. The company has a market capitalization of $426.56 million, a P/E ratio of 16.18 and a beta of 1.31. AMC Networks has a 12 month low of $5.41 and a 12 month high of $11.13. The company has a debt-to-equity ratio of 1.75, a quick ratio of 1.75 and a current ratio of 1.75. The stock has a 50 day moving average price of $9.92 and a two-hundred day moving average price of $8.58.

Institutional Trading of AMC Networks

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Empowered Funds LLC raised its position in shares of AMC Networks by 8.5% in the 1st quarter. Empowered Funds LLC now owns 200,273 shares of the company's stock worth $1,378,000 after acquiring an additional 15,738 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of AMC Networks by 4.0% during the 2nd quarter. Geode Capital Management LLC now owns 933,023 shares of the company's stock worth $5,851,000 after purchasing an additional 36,203 shares during the last quarter. Cetera Investment Advisers bought a new stake in AMC Networks during the second quarter valued at about $63,000. Rhumbline Advisers boosted its position in AMC Networks by 19.4% during the second quarter. Rhumbline Advisers now owns 71,874 shares of the company's stock valued at $451,000 after purchasing an additional 11,685 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in AMC Networks by 28,786.9% in the second quarter. Russell Investments Group Ltd. now owns 28,598 shares of the company's stock valued at $179,000 after purchasing an additional 28,499 shares during the last quarter. Institutional investors own 78.51% of the company's stock.

Analysts Set New Price Targets

Several research firms recently commented on AMCX. Weiss Ratings raised shares of AMC Networks from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday. Zacks Research cut shares of AMC Networks from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 23rd. Finally, Morgan Stanley set a $7.00 target price on shares of AMC Networks in a research note on Thursday, April 30th. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $8.50.

About AMC Networks

AMC Networks Inc NASDAQ: AMCX is a global entertainment company that specializes in the development, production and distribution of premium content for television and streaming platforms. Headquartered in New York City, the company operates a portfolio of pay television channels in the U.S. and abroad, and offers direct-to-consumer streaming services that feature both original programming and licensed fare. AMC Networks is best known for critically acclaimed series such as “Breaking Bad,” “Mad Men” and “The Walking Dead,” and it continues to invest in new scripted and unscripted content across a range of genres.

The company's core television networks in the United States include AMC, IFC, Sundance TV and WE tv, while its joint venture with BBC Studios supports BBC America.

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