Shares of National CineMedia (NASDAQ: NCMI) fell sharply in after-hours trading on Monday, November 5, 2024, following the company's third-quarter earnings release. The drop came despite NCMI reporting better-than-expected sales for the quarter.
The movie theater advertising company posted a quarterly loss of $0.04 per share, missing analysts' consensus estimate of a $0.03 loss per share. However, NCMI's quarterly sales of $62.4 million surpassed analysts' expectations of $58.025 million, representing a significant 152.63% year-over-year increase.
Despite the strong sales performance, investors appeared to focus on the earnings miss, leading to a 5.48% plunge in NCMI's stock price in after-hours trading. The market reaction suggests that the earnings miss overshadowed the positive sales surprise, at least in the short term.
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