The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cinemark Holdings met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins grew, net margins dropped.
Cinemark Holdings reported revenue of $535.9 million. The 14 analysts polled by S&P Capital IQ wanted to see sales of $533.7 million on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $524.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.23. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.19 per share on the same basis. GAAP EPS of $0.16 for Q4 were 50% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.4%, 60 basis points better than the prior-year quarter. Operating margin was 12.1%, 40 basis points better than the prior-year quarter. Net margin was 3.4%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $537.4 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $1.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 93 members out of 115 rating the stock outperform, and 22 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Cinemark Holdings a green thumbs-up, and six give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.