AMC Entertainment Stock Rises on Better-Than-Expected Q2 Earnings

AMC Entertainment shares climbed 3.8% midday Monday after the theater chain posted second-quarter results that surpassed analyst estimates. The company reported breakeven adjusted earnings per share, defying projections of a $0.09 loss, while revenue edged past expectations at $1.4 billion.

While GAAP figures showed a $0.01 per-share loss, this marked significant improvement from the $0.10 loss in Q2 2023. The standout performance came from free cash flow, which turned positive at $88.9 million. "These results showcase the operating leverage in our business," CEO Adam Aron remarked, suggesting this quarter could signal a turning point.

The bullish reaction comes with caveats. Year-to-date free cash FLOW remains negative at $328.1 million, worse than 2023's comparable period. AMC continues offsetting cash burn through financing activities, raising questions about sustainable profitability.