By Dean Seal
Shares of Cinemark fell after the company turned in a record revenue performance for the fourth quarter but delivered a smaller profit than analysts had expected.
The stock was down 15% at $28.07 in early trading. Shares are down almost 10% on the year but were trading at around $16.54 this time a year ago.
The movie-theater chain said Wednesday that revenue surged more than 27% to $824.3 million during the quarter.
Cinemark swung to a profit of $51.3 million from a loss of $18 million a year ago. But the bottom line missed analyst projections by $10 million, according to FactSet. Earnings of 33 cents a share were 5 cents shy of analyst estimates.
Costs may have been a bigger issue than expected. Film rentals and advertising expenses were up by more than a third year-over-year. The total cost of operations was 16% higher.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 19, 2025 10:25 ET (15:25 GMT)
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