Cinemark (NYSE:CNK) Issues 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) issued its earnings results on Friday. The company reported $0.63 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.15), Zacks reports. Cinemark had a net margin of 9.13% and a return on equity of 59.16%. The business had revenue of $940.50 million during the quarter, compared to analysts' expectations of $942.14 million. During the same period in the prior year, the business posted $0.32 EPS. The business's revenue was up 28.1% on a year-over-year basis.

Cinemark Stock Performance

Shares of NYSE CNK traded down $0.40 during midday trading on Tuesday, hitting $25.29. The company's stock had a trading volume of 1,511,923 shares, compared to its average volume of 3,872,612. Cinemark has a 1-year low of $23.12 and a 1-year high of $36.28. The firm's fifty day moving average price is $30.68 and its 200-day moving average price is $29.06. The company has a debt-to-equity ratio of 5.11, a quick ratio of 0.76 and a current ratio of 0.79. The firm has a market cap of $2.91 billion, a P/E ratio of 13.81, a P/E/G ratio of 2.20 and a beta of 1.90.

Cinemark Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 12th. Stockholders of record on Thursday, May 29th were issued a $0.08 dividend. The ex-dividend date of this dividend was Thursday, May 29th. This represents a $0.32 annualized dividend and a dividend yield of 1.3%. Cinemark's payout ratio is 17.49%.

Insider Activity at Cinemark

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

Institutional Trading of Cinemark

A number of hedge funds and other institutional investors have recently made changes to their positions in CNK. Acadian Asset Management LLC bought a new stake in shares of Cinemark in the 1st quarter worth approximately $372,000. Woodline Partners LP bought a new stake in shares of Cinemark in the 1st quarter worth approximately $570,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Cinemark by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 65,699 shares of the company's stock worth $1,635,000 after acquiring an additional 2,872 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Cinemark by 8.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 345,258 shares of the company's stock worth $8,593,000 after acquiring an additional 25,490 shares in the last quarter.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Wells Fargo & Company dropped their price target on shares of Cinemark from $36.00 to $33.00 and set an "overweight" rating on the stock in a research note on Monday. Benchmark reaffirmed a "buy" rating and set a $35.00 price target on shares of Cinemark in a research note on Wednesday, July 2nd. Roth Capital dropped their price target on shares of Cinemark from $36.00 to $34.00 and set a "buy" rating on the stock in a research note on Monday. JPMorgan Chase & Co. lifted their price target on shares of Cinemark from $34.00 to $35.00 and gave the stock an "overweight" rating in a research note on Monday, May 5th. Finally, Wedbush raised shares of Cinemark from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $32.00 to $37.00 in a report on Friday, July 11th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $33.67.

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.