Cinemark (NYSE:CNK) Posts Quarterly Earnings Results, Misses Estimates By $0.15 EPS

Key Points

• Cinemark reported a quarterly earnings per share (EPS) of $0.63, which missed analysts' expectations by $0.15, with revenue of $940.5 million, a year-over-year increase of 28.1%.
• The company's stock declined by 3.1% on the trading day following the earnings release, closing at $26.05.
• Cinemark has cut its dividend to $0.08 per share, yielding 1.2%, with a payout ratio currently at 21.05%.

Cinemark (NYSE:CNK - Get Free Report) posted its earnings results on Friday. The company reported $0.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.15), Zacks reports. Cinemark had a net margin of 8.17% and a return on equity of 51.68%. The business had revenue of $940.50 million for the quarter, compared to analysts' expectations of $942.14 million. During the same period last year, the firm posted $0.32 earnings per share. Cinemark's quarterly revenue was up 28.1% on a year-over-year basis.

Cinemark Trading Down 3.1%

NYSE CNK traded down $0.83 during trading hours on Friday, hitting $26.05. 3,595,565 shares of the company were exchanged, compared to its average volume of 3,847,585. The stock has a 50-day moving average price of $30.81 and a 200 day moving average price of $29.08. Cinemark has a 52 week low of $23.12 and a 52 week high of $36.28. The company has a quick ratio of 0.76, a current ratio of 0.79 and a debt-to-equity ratio of 5.53. The stock has a market cap of $3.00 billion, a PE ratio of 17.13, a price-to-earnings-growth ratio of 2.31 and a beta of 1.88.

Cinemark Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 12th. Shareholders of record on Thursday, May 29th were paid 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 Thursday, May 29th. Cinemark's payout ratio is presently 21.05%.

Insider Activity at Cinemark

In related news, EVP Melissa Thomas sold 7,200 shares of the business's stock in a transaction on Thursday, May 15th. The stock was sold at an average price of $31.43, for a total transaction of $226,296.00. Following the completion of the transaction, the executive vice president owned 210,968 shares in the company, valued at $6,630,724.24. The trade was a 3.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Wanda Marie Gierhart sold 52,524 shares of the business's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $31.85, for a total value of $1,672,889.40. Following the completion of the sale, the insider owned 94,890 shares of the company's stock, valued at $3,022,246.50. The trade was a 35.63% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 84,724 shares of company stock worth $2,724,435 in the last quarter. 2.10% of the stock is owned by company insiders.

Institutional Trading of Cinemark

Hedge funds have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Cinemark by 8.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 345,258 shares of the company's stock valued at $8,593,000 after acquiring an additional 25,490 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Cinemark by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 65,699 shares of the company's stock valued at $1,635,000 after buying an additional 2,872 shares in the last quarter. Woodline Partners LP purchased a new position in Cinemark in the 1st quarter worth approximately $570,000. Finally, Acadian Asset Management LLC purchased a new stake in shares of Cinemark during the 1st quarter valued at approximately $372,000.

Analyst Upgrades and Downgrades

CNK has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft began coverage on Cinemark in a research report on Thursday, July 10th. They set a "buy" rating and a $36.00 price objective for the company. Benchmark restated a "buy" rating and issued a $35.00 price target on shares of Cinemark in a research note on Wednesday, July 2nd. Roth Capital dropped their price target on Cinemark from $36.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday, July 9th. JPMorgan Chase & Co. raised their target price on Cinemark from $34.00 to $35.00 and gave the stock an "overweight" rating in a report on Monday, May 5th. Finally, B. Riley initiated coverage on Cinemark in a report on Friday, May 16th. They issued a "neutral" rating and a $35.00 target price on the stock. One research analyst has rated the stock with a sell rating, two have given a hold rating and ten have assigned a buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $34.00.

About Cinemark

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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