B. Riley Issues Pessimistic Outlook for Cinemark Earnings

Key Points

• B. Riley has lowered its Q4 2025 EPS forecast for Cinemark to $0.62, down from $0.65, reflecting a more cautious outlook on the company's earnings.
• Despite the pessimistic sentiment from B. Riley, Cinemark has received multiple "buy" ratings from other research firms, with a consensus target price of $35.30.
• Recently, Cinemark announced a quarterly dividend of $0.08 per share, with a yield of 1.2% and a payout ratio of 17.49%.

Cinemark Holdings Inc (NYSE:CNK - Free Report) - Equities researchers at B. Riley lowered their Q4 2025 EPS estimates for Cinemark in a report issued on Sunday, October 19th. B. Riley analyst D. Crum now forecasts that the company will earn $0.62 per share for the quarter, down from their prior estimate of $0.65. The consensus estimate for Cinemark's current full-year earnings is $1.93 per share.

A number of other research firms have also issued reports on CNK. Deutsche Bank Aktiengesellschaft began coverage on shares of Cinemark in a research report on Thursday, July 10th. They issued a "buy" rating and a $36.00 price target for the company. Roth Capital reduced their price target on shares of Cinemark from $36.00 to $34.00 and set a "buy" rating for the company in a research report on Monday, August 4th. Morgan Stanley reduced their price target on shares of Cinemark from $35.00 to $34.00 and set an "overweight" rating for the company in a research report on Tuesday. Wedbush raised shares of Cinemark from a "neutral" rating to an "outperform" rating and increased their price target for the stock from $32.00 to $37.00 in a research report on Friday, July 11th. Finally, Barrington Research reissued an "outperform" rating and issued a $36.00 price target on shares of Cinemark in a research report on Tuesday, September 23rd. Nine investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $35.30.

Cinemark Price Performance

NYSE CNK opened at $27.24 on Wednesday. The company has a 50 day simple moving average of $26.89 and a 200-day simple moving average of $28.80. The company has a debt-to-equity ratio of 4.32, a current ratio of 0.91 and a quick ratio of 0.88. The firm has a market capitalization of $3.13 billion, a price-to-earnings ratio of 14.89, a price-to-earnings-growth ratio of 1.91 and a beta of 1.75. Cinemark has a 52-week low of $23.12 and a 52-week high of $36.28.

Cinemark (NYSE:CNK - Get Free Report) last posted its quarterly earnings data on Friday, August 1st. The company reported $0.63 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.15). Cinemark had a net margin of 9.13% and a return on equity of 59.16%. The firm had revenue of $940.50 million for the quarter, compared to analysts' expectations of $942.14 million. During the same period in the prior year, the company posted $0.32 earnings per share. Cinemark's quarterly revenue was up 28.1% compared to the same quarter last year.

Hedge Funds Weigh In On Cinemark

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its position in Cinemark by 118.5% during the second quarter. EverSource Wealth Advisors LLC now owns 935 shares of the company's stock valued at $28,000 after acquiring an additional 507 shares in the last quarter. Elevation Point Wealth Partners LLC acquired a new position in Cinemark during the second quarter valued at approximately $47,000. Financial Consulate Inc. acquired a new position in Cinemark during the third quarter valued at approximately $50,000. GAMMA Investing LLC grew its holdings in Cinemark by 66.2% during the second quarter. GAMMA Investing LLC now owns 3,474 shares of the company's stock valued at $105,000 after purchasing an additional 1,384 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in Cinemark by 242.9% during the first quarter. Russell Investments Group Ltd. now owns 3,532 shares of the company's stock valued at $88,000 after purchasing an additional 2,502 shares during the last quarter.

Insiders Place Their Bets

In related news, EVP Melissa Thomas sold 7,200 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $25.17, for a total transaction of $181,224.00. Following the transaction, the executive vice president owned 203,768 shares of the company's stock, valued at approximately $5,128,840.56. This trade represents a 3.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 2.30% of the company's stock.

Cinemark Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Wednesday, August 27th were given a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Wednesday, August 27th. Cinemark's dividend payout ratio (DPR) is presently 17.49%.

Cinemark Company Profile

Cinemark Holdings, Inc, together with its subsidiaries, engages in the motion picture exhibition business. As of February 16, 2024, it operated 501 theatres with 5,719 screens in 42 states and 13 countries in South and Central America. Cinemark Holdings, Inc was founded in 1984 and is headquartered in Plano, Texas.

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