Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AMC Networks Inc (NASDAQ: AMCX ) were getting left on the cutting room floor today, falling as much as 18%, and finishing down 8% on a subpar first-quarter earnings report.
So what: The cable parent saw sales jump in the quarter, increasing 37%, to $524.6 million, ahead of estimates at $507.5 million, but expenses grew even faster as the company spends to find future hit shows to replace series such as Breaking Bad and the outgoing Mad Men. As a results, earnings improved, but only slightly, from $0.96 per share to $1.04 per share, missing estimates at $1.14. CEO Josh Sapan noted the strong performance of The Walking Dead and the company's international division, which saw revenue spike 635%, to $76.6 million, thanks to its acquisition last October of Chellomedia.
Now what: The entertainment business is a fickle one, as viewers are often loyal to shows rather than networks, and companies are only as successful as the programs they're currently airing. Shares of AMC hit a 52-week low on today's report, but the company seems to be taking steps in the right direction with the Chellomedia acquisition, which enables its expansion into Europe and other parts of the world. Given the robust sales growth in the past quarter, we could see a better result on the bottom line the next time that tthe company reports.
Will this stock be your next multi-bagger?
Give me five minutes, and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. But it's not just any run-of-the-mill company; it’s a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% during the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.