Shares of AMC Entertainment Holdings Inc. are up 5.9% Tuesday, putting them on pace to extend their winning streak to three days and register the biggest daily percentage increase since Feb. 14, when they rose 6.9%.
The movie-theater chain and original meme stock reports fourth-quarter results after market close Wednesday. Analysts surveyed by FactSet expect AMC
AMC,
to report a fourth-quarter loss of 70 cents a share and revenue of $1.058 billion.
In a note released Friday, analyst firm Wedbush said that AMC is set for share gains when it reports fourth-quarter results, although 2024 could be a “tumultuous” year for the company.
Related: AMC set for Q4 share gains but expect a ‘tumultuous’ 2024, says Wedbush
“AMC expanded its market share in 2023 and is positioned to maintain or expand further on its 22% market share with its vast network of premium large-format screens and concert movie distribution,” Wedbush analyst Alicia Reese wrote in the note. AMC also has an opportunity to drive revenue growth from its European circuit with theater upgrades that would boost per-screen averages, she added.
Underpinning AMC’s share gains, the analyst pointed to the success of concert films “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé.”
“AMC likely gained market share in Q4:23 as it distributed the Taylor Swift and Beyonce concert films throughout its circuit and competitors’ global circuits in the quarter,” wrote Reese. “We expect more alternative fare in 2024.”
Related: AMC hits another record low close, reflecting demise of its ‘meme-stock’ status
AMC shares have fallen 29.6% in the last three months, compared with the S&P 500 index’s
SPX
gain of 11.3%.
This story originally appeared on Marketwatch
