AMC Networks (NASDAQ:AMCX) Releases Quarterly Earnings Results, Misses Estimates By $0.14 EPS

Key Points

• AMC Networks missed earnings expectations, reporting quarterly EPS of $0.08 versus the $0.22 consensus estimate. Revenue also declined 2.4% year over year, though net margin and return on equity remained positive.
• The company said it is on track with its longer-term plan, reaffirming its full-year outlook and targeting at least $200 million in free cash flow by 2026. It generated $65 million in free cash flow in Q1 and also reiterated roughly $2.25 billion in revenue and $350 million in AOI for 2026.
• Streaming is gaining momentum, with revenue up 11% and streaming now the largest source of domestic revenue. AMC Networks said it has about 10.1 million streaming subscribers and sees further growth from bundling and FAST/channel expansion.

AMC Networks (NASDAQ:AMCX - Get Free Report) announced its quarterly earnings data on Friday. The company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.14), Zacks reports. AMC Networks had a net margin of 3.87% and a return on equity of 11.32%. The company's revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.52 earnings per share.

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

• The company reiterated its full-year outlook and emphasized strong cash generation, reporting $65 million of free cash flow in Q1 and reaffirming a 2026 target of at least $200 million in free cash flow, with consolidated revenue of ~$2.25 billion and AOI of ~$350 million.
• Streaming and distribution momentum — streaming revenue grew 11%, streaming is now the largest source of domestic revenue, the company reports ~10.1 million streaming subscribers and 1.8 million hard-bundle activations, and plans (including DirecTV bundling and FAST/channel expansion) should broaden reach.
• High-value content opportunity — the rights to The Walking Dead return in January 2027, the company is pursuing co-exclusive licensing with multiple interested partners, and expects significant monetization upside (not included in 2026 guidance).
• Profitability and revenue mix pressures — consolidated AOI fell 34% year-over-year to $69 million, domestic affiliate revenue declined 16% (driven by subscriber losses) and advertising was down 5%, with AOI weighted to the back half and Q2 expected to be the low point.
• Balance sheet and capital-return actions — the company retired/extended 2029 debt into 2032 maturities, plans to pay down term loan A and terminate its credit facility, reports pro forma net leverage ~3.5x, and announced an approximately $30 million accelerated share repurchase.

AMC Networks Stock Performance

AMCX traded up $0.24 during trading on Friday, reaching $8.80. 617,467 shares of the company's stock were exchanged, compared to its average volume of 425,925. AMC Networks has a 1 year low of $5.41 and a 1 year high of $10.27. The company has a debt-to-equity ratio of 1.72, a current ratio of 1.67 and a quick ratio of 1.67. The stock has a market capitalization of $375.85 million, a P/E ratio of 6.42 and a beta of 1.31. The company's fifty day simple moving average is $7.69 and its 200-day simple moving average is $8.16.

Insider Transactions at AMC Networks

In other AMC Networks news, CAO Michael J. Sherin III sold 5,963 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $7.96, for a total transaction of $47,465.48. Following the completion of the transaction, the chief accounting officer directly owned 10,648 shares of the company's stock, valued at approximately $84,758.08. This trade represents a 35.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 15.62% of the company's stock.

Hedge Funds Weigh In On AMC Networks

Several institutional investors have recently made changes to their positions in AMCX. Raymond James Financial Inc. purchased a new position in shares of AMC Networks during the 2nd quarter valued at approximately $25,000. Northwestern Mutual Wealth Management Co. increased its holdings in shares of AMC Networks by 133.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,786 shares of the company's stock valued at $30,000 after purchasing an additional 2,735 shares in the last quarter. Advisory Services Network LLC purchased a new position in shares of AMC Networks during the 3rd quarter valued at approximately $43,000. State of Wyoming purchased a new position in shares of AMC Networks during the 2nd quarter valued at approximately $51,000. Finally, First Trust Advisors LP purchased a new position in shares of AMC Networks during the 2nd quarter valued at approximately $63,000. 78.51% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages recently commented on AMCX. Morgan Stanley set a $7.00 price objective on shares of AMC Networks in a research report on Thursday, April 30th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of AMC Networks in a research report on Wednesday, January 21st. Finally, Wells Fargo & Company increased their price objective on shares of AMC Networks from $8.00 to $10.00 and gave the company an "equal weight" rating in a research report on Thursday, February 12th. Two research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Strong Sell" and a consensus price target of $7.67.

AMC Networks Company Profile

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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