Wedbush Has Bearish Forecast for Cinemark FY2025 Earnings

Key Points

• Wedbush analysts have cut Cinemark's FY2025 earnings per share (EPS) estimate from $1.63 to $1.31, while maintaining an "Outperform" rating with a price target of $37.00.
• Cinemark's recent earnings report revealed a missed EPS forecast of $0.63 compared to the consensus estimate of $0.78, despite a 28.1% year-over-year revenue increase.
• The company recently cut its dividend to $0.08 per share, marking a yield of 1.3% and a payout ratio of 17.49% amid fluctuating stock performance.

Cinemark Holdings Inc (NYSE:CNK - Free Report) - Equities researchers at Wedbush cut their FY2025 earnings per share estimates for shares of Cinemark in a report issued on Monday, August 4th. Wedbush analyst A. Reese now expects that the company will earn $1.31 per share for the year, down from their prior estimate of $1.63. Wedbush has a "Outperform" rating and a $37.00 price target on the stock. The consensus estimate for Cinemark's current full-year earnings is $1.93 per share. Wedbush also issued estimates for Cinemark's Q4 2025 earnings at $0.45 EPS, Q3 2026 earnings at $1.07 EPS, Q4 2026 earnings at $0.42 EPS, FY2026 earnings at $2.13 EPS and FY2027 earnings at $2.41 EPS.

Cinemark (NYSE:CNK - Get Free Report) last released 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). The firm had revenue of $940.50 million during the quarter, compared to the consensus estimate of $942.14 million. Cinemark had a net margin of 9.13% and a return on equity of 59.16%. Cinemark's revenue was up 28.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.32 earnings per share.

A number of other equities research analysts also recently issued reports on the company. Wells Fargo & Company reiterated an "overweight" rating and issued a $33.00 price objective (down previously from $36.00) on shares of Cinemark in a research report on Monday. Benchmark reaffirmed a "buy" rating and issued a $35.00 price target on shares of Cinemark in a report on Wednesday, July 2nd. B. Riley began coverage on Cinemark in a report on Friday, May 16th. They set a "neutral" rating and a $35.00 price objective for the company. 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 objective on the stock. Finally, Wall Street Zen lowered shares of Cinemark from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and ten have given a buy rating to the company. According to MarketBeat.com, Cinemark has an average rating of "Moderate Buy" and an average price target of $33.67.

Cinemark Price Performance

NYSE:CNK traded down $0.16 during trading hours on Wednesday, hitting $24.83. The stock had a trading volume of 5,586,173 shares, compared to its average volume of 4,201,480. The company has a 50 day simple moving average of $29.88 and a two-hundred day simple moving average of $28.93. The firm has a market capitalization of $2.86 billion, a price-to-earnings ratio of 13.57, a P/E/G ratio of 1.79 and a beta of 1.90. The company has a debt-to-equity ratio of 4.32, a current ratio of 0.91 and a quick ratio of 0.76. Cinemark has a one year low of $23.12 and a one year high of $36.28.

Cinemark Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 12th. Investors of record on Thursday, May 29th were issued a dividend of $0.08 per share. 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 dividend payout ratio (DPR) is currently 17.49%.

Insider Activity at Cinemark

In other Cinemark news, insider Valmir Fernandes sold 25,000 shares of the business's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $33.01, for a total value of $825,250.00. Following the completion of the sale, the insider directly owned 130,612 shares of the company's stock, valued at $4,311,502.12. The trade was a 16.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Wanda Marie Gierhart sold 52,524 shares of the firm's stock in a transaction dated 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 transaction, the insider directly owned 94,890 shares in the company, valued at $3,022,246.50. This trade represents a 35.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 84,724 shares of company stock valued at $2,724,435. Insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Cinemark

A number of large investors have recently bought and sold shares of the stock. Elequin Capital LP boosted its stake in shares of Cinemark by 211.6% during the fourth quarter. Elequin Capital LP now owns 997 shares of the company's stock valued at $31,000 after purchasing an additional 677 shares during the period. Russell Investments Group Ltd. raised its holdings in Cinemark by 402.4% during the 4th quarter. Russell Investments Group Ltd. now owns 1,030 shares of the company's stock valued at $32,000 after buying an additional 825 shares during the last quarter. Aster Capital Management DIFC Ltd boosted its position in Cinemark by 380.0% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 1,896 shares of the company's stock valued at $59,000 after buying an additional 1,501 shares during the period. Quarry LP grew its holdings in Cinemark by 41.8% in the 4th quarter. Quarry LP now owns 2,114 shares of the company's stock worth $65,000 after acquiring an additional 623 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in Cinemark by 66.2% in the 2nd quarter. GAMMA Investing LLC now owns 3,474 shares of the company's stock worth $105,000 after acquiring an additional 1,384 shares during the last quarter.

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.