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Cinemark (CNK) Tops Q3 Earnings, Lags Revenue Estimates

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Cinemark Holdings Inc. (CNK - Free Report) reported mixed financial results for the third quarter of 2016 wherein the bottom line beat the Zacks Consensus Estimate while the top line missed the same.

Quarterly net income was $65.7 million or 56 cents per share compared with $46.3million or 40 cents in the year-ago quarter. The company’s reported earnings figure of 56 cents per share beat the Zacks Consensus Estimate of 55 cents.

 

Total quarterly revenue of $768.57 million was up 9.78% year over year but below the Zacks Consensus Estimate of $774 million.

Segment-wise, Admissions revenues were $472.84 million, up 9.4% year over year. Concession revenues grossed $261.39 million, up 13.5%. Other revenues were $34.34 million, down 8.87% year over year. Geographically, U.S. revenues totaled $572.92 million, up 12.5% year over year. International revenues were $199.47 million, up 2.5%.

Quarterly operating costs and expenses totaled $650.78 million, up 8.3% year over year. Operating income was $117.79 million, up 18.8% year over year. Operating margin was 15.3% compared with 14.2% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $184.89 million, up 16.2% from the year-ago quarter.

At the end of the third quarter, Cinemark had $527.11 million of cash and cash equivalents and $1,790.79 million of debt outstanding compared with $588.5 million and $1,781.3 million, respectively, at the end of 2015. At the end of the reported quarter, the debt-to-capitalization ratio was 0.43, flat with the end-2015 figure. Quarterly capital expenditure was $98.8 million compared with $76.6 million in the year-ago quarter.

Operating Data

In the reported quarter, worldwide average screen count was 5,880, up 2.4% year over year. Domestic average screen count was 4,563, up 1.55% year over year. International average screen count was 1,317, up 5.36% year over year.

Quarterly worldwide average ticket price was $6.21, up 1.97% year over year. Domestic average ticket price was $7.39, up 1.65% year over year. International average ticket price was $4.18, flat year over year.

Quarterly worldwide concession revenues per patron came in at $3.43, up 5.86% year over year. Domestic concession revenues per patron were $4.11, up 6.75% year over year. International concession revenues per patron were $2.27, flat year over year.

CINEMARK HLDGS Price, Consensus and EPS Surprise

 

CINEMARK HLDGS Price, Consensus and EPS Surprise | CINEMARK HLDGS Quote

Zacks Rank and Stocks to Consider

Cinemark currently carries a Zacks Rank #3 (Hold). Here are some companies that have the right combination of elements to post an earnings beat this quarter.

International Business Machines Corporation (IBM - Free Report) , with an Earnings ESP of +0.20% and a Zacks Rank #3.The company’s earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters.

Verizon Communications Inc. (VZ - Free Report) , with an Earnings ESP of +1.11% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.

Microsoft Corporation (MSFT - Free Report) , with an Earnings ESP of +1.30% and a Zacks Rank #3.The company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters.

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