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What: Shares of National CineMedia (NASDAQ: NCMI) were getting left on the cutting room floor today, falling as much as 11%, after reporting earnings last night.
So what: National CineMedia, which produces advertising for movie previews and in movie theaters, said that earnings per share came in at $0.16, missing estimates by $0.01, and revenues grew by just 1.1%, to $115.9 million, also missing expectations. Guidance for the first quarter was better than the experts predicted, but worse for the year. National CineMedia said it sees a sales increase of just 1% to 4% for 2013 now. CEO Kurt Hall said the company had a strong year, but got hurt in Q4 by Hurricane Sandy, and what he called the "sputtering" of the economy.
Now what: National CineMedia shares recovered most of their losses during the trading session, but still finished down about 3%. Traditional advertising of all forms is struggling in the digital age, as National CineMedia's slow growth confirms. Due to that shift, I'm inclined to stay away.
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