National CineMedia (NASDAQ:NCMI) Releases Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• National CineMedia missed quarterly expectations: It reported a loss of $0.10 per share versus the consensus estimate of a $0.08 loss, while revenue of $58.40 million fell short of analysts’ $59.34 million forecast.
• The stock declined 4.1% to $3.79 following the results, with trading volume above its average. The company continues to report negative profitability metrics, including a 3.47% net margin.
• Analyst sentiment remains mixed: NCMI has an overall “Hold” rating and an average price target of $5.38, while institutional investors own approximately 69.5% of outstanding shares.

National CineMedia (NASDAQ:NCMI - Get Free Report) issued its earnings results on Tuesday. The business services provider reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.02), FiscalAI reports. National CineMedia had a negative return on equity of 1.80% and a negative net margin of 3.47%.The business had revenue of $58.40 million during the quarter, compared to analyst estimates of $59.34 million.

National CineMedia Stock Down 4.1%

Shares of NCMI traded down $0.16 during midday trading on Tuesday, reaching $3.79. 692,941 shares of the stock were exchanged, compared to its average volume of 406,373. The company has a market cap of $355.43 million, a price-to-earnings ratio of -42.11 and a beta of 1.38. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.03. National CineMedia has a 12-month low of $2.78 and a 12-month high of $5.03. The firm has a 50 day simple moving average of $3.78 and a 200-day simple moving average of $3.51.

Insider Activity at National CineMedia

In related news, insider Maria Vg Woods sold 12,058 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $3.77, for a total value of $45,458.66. Following the transaction, the insider owned 163,162 shares in the company, valued at approximately $615,120.74. This represents a 6.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Ameriprise Financial Inc. boosted its holdings in National CineMedia by 166.5% in the third quarter. Ameriprise Financial Inc. now owns 236,065 shares of the business services provider's stock worth $1,065,000 after purchasing an additional 147,500 shares in the last quarter. Orbis Allan Gray Ltd bought a new position in National CineMedia during the second quarter valued at about $20,338,000. Geode Capital Management LLC raised its holdings in National CineMedia by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 1,958,541 shares of the business services provider's stock valued at $7,621,000 after buying an additional 25,589 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of National CineMedia by 21.3% in the first quarter. Goldman Sachs Group Inc. now owns 683,614 shares of the business services provider's stock worth $3,992,000 after buying an additional 120,079 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of National CineMedia by 59.8% during the 1st quarter. AQR Capital Management LLC now owns 488,025 shares of the business services provider's stock worth $2,850,000 after acquiring an additional 182,548 shares in the last quarter. Institutional investors and hedge funds own 69.49% of the company's stock.

Analyst Upgrades and Downgrades

NCMI has been the subject of several research analyst reports. Wedbush reduced their price objective on National CineMedia from $6.50 to $6.00 and set an "outperform" rating for the company in a research note on Tuesday, May 12th. Wall Street Zen upgraded National CineMedia from a "strong sell" rating to a "sell" rating in a report on Saturday, June 6th. Finally, Weiss Ratings lowered shares of National CineMedia from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, May 13th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, National CineMedia presently has an average rating of "Hold" and an average target price of $5.38.

About National CineMedia

National CineMedia, Inc is a leading U.S. out-of-home media company specializing in cinema advertising. The firm operates a proprietary network that delivers high-impact advertising content to moviegoers across a broad footprint of theaters, offering brands a targeted and immersive way to engage audiences in a captive, distraction-free environment.

Founded in 2003 and headquartered in Centennial, Colorado, National CineMedia began as a joint venture among several major exhibition chains.

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