AMC Entertainment Holdings, Inc. (AMC), a company involved in the theatrical exhibition business, has gained an increase of 4.38% in aftermarket trading session. Consequently, AMC is trading at $29.82 at the time of the writing. On Wednesday, AMC closed the day at $28.57 after depreciating 15.82% during regular trading hours. The decline was attributable to the detection of Omicron variant in California.
Why AMC Plunged?
On Wednesday, Center for Disease Control and Prevention (CDC) announced that the first case of Omicron variant, the mutated form of COVID-19 and first found to exist in South Africa, was detected in California. The stock slid over the concerns that the variant could disrupt normal and daily life. The company closed its operations temporarily during the period of the COVID-19 pandemic. However, since the reopening of businesses, as a result of the subsiding effects of pandemic, AMC stock was on a wild ride. But with the announcement of the deadlier variants existent in California, AMC stock plunged during Wednesday’s regular trading hours.
Q3 2021 Operational Results
On 8th November, AMC released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September. The company generated total revenue of $763.2 million during the quarter against $119.5 million for the same quarter of 2020. The total operating expenses for the period were $908.4 million against $794.9 million for the same period of 2020. The net loss suffered by the company during the three-month period was $224.2 million (or $0.44 per basic and diluted share) against $905.8 million (or $8.41 per basic and diluted share) for the same period of 2020.
Executive Commentary
Adam M. Aron, Chairman of the Board, Chief Executive Officer, and President of AMC, while commenting on the results said that since coming out of pernicious effects of the pandemic, the company has performed tremendously well, as evident from the comparison of the same periods of fiscal 2021 and 2020. He hoped that the company would continue to perform in a similar fashion during future quarters as well.
Future Outlook for AMC
During the last three months, AMC stock has declined approximately 35%. The reason for that could be the uncertain times, as the different variants of the pandemic are taking shape, which in turn is making investors around fearful of investing, just like the recent wave of Omicron variant has caused havoc for markets around the globe. However, just like it rose in the past, analysts are hopeful that AMC has the capacity to attract investors in the future.
