The 10-second takeaway
For the quarter ended March 31 (Q1), Cinemark Holdings beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margin dropped, operating margin expanded, and net margin increased.
Cinemark Holdings recorded revenue of $578.8 million. The 15 analysts polled by S&P Capital IQ expected a top line of $572.4 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $483.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.37 for Q1 were 68% higher than the prior-year quarter's $0.22 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 27.9%, 720 basis points worse than the prior-year quarter. Operating margin was 15.6%, 520 basis points better than the prior-year quarter. Net margin was 7.3%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $651.2 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $2.50 billion. The average EPS estimate is $1.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 95 members out of 116 rating the stock outperform, and 21 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Cinemark Holdings a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cinemark Holdings is outperform, with an average price target of $25.56.
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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.