AMC shares plunge after pre-announcing ‘shocking’ quarterly loss | CNBC

Shares of AMC Entertainment are diving by 25 percent Wednesday after the company revealed it expects a dramatic second-quarter loss, and believes the third quarter will be equally unrelenting.

AMC said the expected loss reflects “industry box office trends.” American box offices declined 4.4 percent in the second-quarter compared with the same period last year, according to AMC.

Against this tide of declining moviegoing, the second-largest movie theater chain in the U.S. is attempting to curtail costs by cutting back on both its staff and operating hours, as well as through a new pricing strategy. But the cost reduction initiatives have yet to bear fruit this year.

“We were caught by surprise when AMC pre-announced second-quarter results over 30 days after the close of the quarter, and were further surprised by the magnitude of the top and bottom line miss,” Wedbush Securities’ Michael Pachter wrote in a note, along with a team of analysts.

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AMC shares plunge after pre-announcing ‘shocking’ quarterly loss.