B. Riley Has Negative Outlook for Cinemark FY2025 Earnings

Key Points

• B. Riley has revised its FY2025 earnings per share estimate for Cinemark from $1.69 to $1.45, maintaining a "Neutral" rating with a target price of $35.00.
• Cinemark reported $0.63 earnings per share for Q2 2025, missing expectations of $0.78, despite a year-over-year revenue increase of 28.1%.
• The company announced a quarterly dividend of $0.08, but also experienced insider selling, with key executives reducing their stock holdings by significant percentages.

Cinemark Holdings Inc (NYSE:CNK - Free Report) - Equities research analysts at B. Riley lowered their FY2025 earnings per share estimates for Cinemark in a research note issued to investors on Monday, August 4th. B. Riley analyst D. Crum now forecasts that the company will post earnings of $1.45 per share for the year, down from their previous estimate of $1.69. B. Riley currently has a "Neutral" rating and a $35.00 target price on the stock. The consensus estimate for Cinemark's current full-year earnings is $1.93 per share. B. Riley also issued estimates for Cinemark's Q4 2025 earnings at $0.65 EPS and FY2026 earnings at $2.32 EPS.

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

A number of other brokerages have also recently issued reports on CNK. Wells Fargo & Company reiterated an "overweight" rating and issued a $33.00 price target (down previously from $36.00) on shares of Cinemark in a research note on Monday. Wall Street Zen downgraded shares of Cinemark from a "hold" rating to a "sell" rating in a research note on Saturday, August 2nd. Barrington Research reiterated an "outperform" rating and set a $36.00 target price on shares of Cinemark in a research note on Monday. Benchmark restated a "buy" rating and issued a $35.00 price target on shares of Cinemark in a research note on Wednesday, July 2nd. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on Cinemark in a research report on Thursday, July 10th. They set a "buy" rating and a $36.00 price objective on the stock. Two 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 stock. According to data from MarketBeat.com, Cinemark currently has an average rating of "Moderate Buy" and an average target price of $33.67.

Cinemark Stock Up 0.3%

Shares of Cinemark stock traded up $0.07 during midday trading on Tuesday, hitting $24.99. The company had a trading volume of 3,799,934 shares, compared to its average volume of 4,266,977. The company has a debt-to-equity ratio of 4.32, a quick ratio of 0.76 and a current ratio of 0.91. The company has a 50 day moving average of $30.05 and a 200 day moving average of $28.96. Cinemark has a 52-week low of $23.12 and a 52-week high of $36.28. The stock has a market capitalization of $2.87 billion, a P/E ratio of 13.65, a P/E/G ratio of 2.37 and a beta of 1.90.

Institutional Trading of Cinemark

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

Insider Buying and Selling

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

Cinemark Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 12th. Investors of record on Thursday, May 29th were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Thursday, May 29th. Cinemark's dividend payout ratio (DPR) is currently 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.