Movie exhibitor’s sales fall shy of Wall Street’s fourth-quarter 2015 forecast
Cinemark may have missed Wall Street’s fourth-quarter 2015 top-line forecast, but it didn’t disappoint at the bottom line.
This morning, the movie exhibitor reported 50 cents in earnings per share on $707.2 million in revenue for the recent three-month period. Profit and sales were up from the comparable quarter last year, thanks to increases at both Admissions and Concessions.
That growth led Cinemark to raise its dividend by 8 percent. The cash dividend is now $1.08 per share of
Media analysts had forecast earnings per share (EPS) of 47 cents on $711.76 million in revenue, per Yahoo Finance. Zacks thought the company would hit the same EPS number, though a broader consensus estimate at that investment website saw the profit distribution coming in a penny lower.
“It was a record-breaking year for the North American industry box office, as well as for each of the countries in which we operate throughout South and Central America,” Cinemark CEO Mark Zoradi said on his overall financial results. “Cinemark is extremely pleased with our worldwide fourth quarter and full-year 2015 results that created new records in each key performance metric, including attendance, admissions and concession revenues, average ticket price, concession per patron, Adjusted EBITDA and net income.”
“The record results of 2015 coupled with our confidence in our long-term growth strategy were key considerations in the capital allocation discussion with the board,” he added, speaking about the dividend increase. “Cinemark’s financial strength and sustainable cash flow enable us to invest in the continued growth of our business while also returning capital to investors and enhancing long-term shareholder value.”
CNK stock closed Tuesday at $30.67, down 4 cents per share, or 0.13 percent.
Senior management will host a conference call at 8:30 a.m. ET to discuss the financial results.