Cinemark Stock Plunges As Q4 EPS Miss Overshadows Record Revenue, Dividend Reinstatement: Retail Shrugs It Off

Shares of movie theater chain Cinemark Holdings, Inc. (CNK) fell early Wednesday after the company reported mixed results for its fiscal year 2024 fourth quarter.

The Plano, Texas-based company reported fourth-quarter earnings per share (EPS) of $0.33, reversing from a $0.15 loss per share reported a year earlier. Yet, the bottom line missed the consensus estimate of $0.41.

Revenue climbed 27.5% year over year (YoY) to a record $814.3 million, exceeding the mean analysts’ estimate of $797.72 million. Admissions revenue accounted for roughly half of the total revenues and climbed 26.1%, while concession revenue rose 29% to $313.4 million.

Adjusted earnings before interest, taxes, depreciation, and taxes (EBITDA) doubled YoY to $156.9 million.

The company noted that the worldwide average ticket price was $7.97 during the quarter, and concession revenue per patron was $6.15.

Among the operational metrics, 51 million moviegoers were entertained during the fourth quarter. The domestic box office results for 2024 surpassed the North American industry performance by 300 basis points relative to 2023. In 2024, the company achieved an all-time high food and beverage per cap of $5.96.

Cinemark CEO Sean Gamble said, “On better-than-expected industry performance, Cinemark delivered outsized box office proceeds and solid overall financial results driven by an intense focus on disciplined operational execution and the sustained impact of our strategic initiatives.”

Citing fundamental strength and a positive outlook, Cinemark reinstated its annual cash dividend of $0.32 per share, which was suspended in April 2020 after the COVID-19 pandemic. 

On Stocktwits, retail sentiment toward Cinemark stock stayed ‘bullish’ (74/100), with the message volume improving to a ‘normal’ level. 

Retail watchers on the platform welcomed the $0.32 dividend payment, with one stating that the move could push the stock past $40.

Cinemark stock traded down 12.33% at $28.15 early Wednesday. Its year-to-date gain is 6.7%.

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