Shares of AMC Entertainment plummeted after the company previewed a dramatic quarterly loss, unveiled a cost reduction plan and forecast a "very challenging third quarter."
Here's what the company projects for its second quarter, compared to Wall Street projections, according to Thomson Reuters consensus estimates:
- Loss per share: $1.34 to $1.36, vs. 1 cent expected
- Revenue: $1.200 billion to $1.204 billion, vs. $1.249 billion expected.
In the year-ago quarter, the company reported earnings of 24 cents a share on $764 million in revenue.
The stock plunged more than 26 percent in after-hours trade.
While AMC said it saw double-digit year-over-year growth in European box office, the company said its results reflect industry-wide trends, including weakness in North America.
AMC said that the U.S. box office declined 4.4 percent in the second quarter, compared to the comparable year-ago period.
The company also issued full-year revenue guidance below analysts' expectations.
Here is what AMC's outlook for its full-year results, compared to analyst forecasts, according to Thomson Reuters:
- Per share: Loss of 97 cents to $1.17, vs. expected earnings of 60 cents
- Revenue: $5.10 billion to $5.23 billion, vs. $5.27 billion expected
To combat this tough environment, AMC said it will implement a handful of cost-saving and revenue-enhancing measures, including promotional offers, strategic pricing and a reduction in operating hours and staffing.
The company said this plan will impact both its theater locations as well as its theater support center in Leawood, Kansas.
AMC is scheduled to report its complete financial results Monday.