Defying forecasts for a slow summer after last year's blockbusters, films like "Sex and the City" and "Kung Fu Panda" had strong debuts. After a weak May, "Sex" got June off to a roaring start with the best opening ever for an R-rated comedy, says Soleil Research Associates analyst Marla S. Backer.
"Zohan," starring Adam Sandler, also exceeded forecasts.
"The June box office continues to recapture box office dollars that were missing from the May films," says BMO Capital Markets analyst Jeffrey Logsdon.
Shares of movie operators have been hurt by gloomy projections. Backer has a "buy" rating on Carmike Cinemas and a "hold" on Cinemark Holdings, although she says it's oversold. Backer says "Sex" shows attendance is "not in a downward spiral," but that "audiences will come to theaters for good movies."
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