National CineMedia Stock Poised To Open At 8-Month Low After Q4 Revenue Dips, Guidance Underwhelms: Retail Stays On Sidelines

National CineMedia, Inc. (NCMI) shares plunged in Thursday’s after-hours session after the cinema advertising platform announced a fourth-quarter revenue decline and a subpar guidance for the current quarter.

The Centennial, Colorado-based company reported earnings per share (EPS) of $0.26 for the fourth quarter of the fiscal year 2024, up from the $0.24 per share reported for the year-ago period.

Revenue fell 5.1% year over year (YoY) to $86.3 million, with the company attributing the decline to an unfavorable slate and the prior year's outperformance of “Taylor Swift: The Eras Tour.” 

Howevet, the topline exceeded the Finchat-compiled consensus of $84.77 million. 

Adjusted operating income before depreciation and amortization (OIBDA), a non-GAAP measure, fell YoY to $35 million from $39.8 million.

Tom Lesinski, CEO of National CineMedia said the company’s advertising network continued to deliver value with its NCMx data platform, driving measurable return on investment (ROI).  

National CineMedia expects first-quarter revenue of $34 million to $36 million and an adjusted OIBDA of negative $9.5 million to negative $7.5 million.  The consensus calls for revenue of $39.53 million for the quarter.

This company said the guidance reflected lower expected impressions in the first quarter and temporarily delayed advertising spend due to reductions in government spending impacting advertising as well as the ongoing tariff uncertainty impacting certain categories. 

However, it remained optimistic about the first half based on robust second-quarter sales pacing.

On Stocktwits, the retail sentiment toward National CineMedia stock remained ‘neutral’ (50/100), with the message volume coming to a standstill from the ‘extremely low’ activity seen a week ago.

National CineMedia stock slumped 8.66% to $5.80 in the after-hours session on Thursday, the lowest level in eight months. The stock is down nearly 4.4% so far this year.

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