Cinemark Holdings Inc.
(
CNK
) reported solid third quarter results early last month as this
motion picture exhibitor had a company record for worldwide
attendance. The Zacks #2 Rank (Buy) has seen nearly every analyst
revise estimates higher in the past 30 days, as shares trade near
its 52-week high of $27.50. Furthermore, the company offers a
dividend yield of 3.2%.
Strong Third Quarter
Cinemark Holdings reported strong third quarter results on November
6 as attendance reached 69.7 million patrons. Earnings of 41 cents
per share exceeded the Zacks Consensus Estimate by 17.1%.
Total revenues were $633.6 million, which topped the Zacks
Consensus Estimate of $630 million. Admissions revenue was $402.4
million and concession revenue was $200.1 million. Adjusted EBITDA
stood at $148.4 million.
Surge in Earnings Estimate Revisions
Over the past 30 days, the Zacks Consensus Estimate for 2012
increased 5.3% to $1.59, as 12 of 13 earnings estimates moved
higher. This implies a year-over-year growth of 29.5%. For 2013,
the Zacks Consensus Estimate is up 6.3% to $1.85 over the same
period, as 11 of 13 earnings estimates moved upward. This
represents growth of 16.2%.
Dividend Payout
Cinemark Holdings paid a dividend of 21 cents per share in the
third quarter of 2012. The company has maintained a steady dividend
payout over the past several quarters since November 2010. The
current dividend payment affirms a yield of 3.2%.
Attractive Valuation
Shares of Cinemark Holdings look attractive on a price-to-earnings
(P/E) and price-to-sales (P/S) basis. It currently trades at a
forward P/E of 16.60x versus the peer group average of 17.14x. On a
P/S basis, shares trade at 1.27x versus 1.35x for the peer group
average. Its PEG ratio is 1.09, based on a 5-year EPS growth rate
of 15.2%.
Since February 13, 2012, Cinemark shares have consistently fared
better than the simple moving average for 200 days or SMA (200).
The year-to-date return for the stock is 47.8%, compared to the
S&P 500 tally of 10.4%.
The Bottom Line
With rising earnings estimates, robust growth projections and a
decent dividend yield, Cinemark Holdings offers an enticing upside
potential going forward. In addition, a geographic diversity with
strong U.S. and Latin American footprints bodes well for its
long-term growth.
Cinemark Holdings Inc. is a leader in the motion picture exhibition
industry, operating 461 theatres with 5,207 screens in 39 U.S.
states, as well as in Brazil, Mexico, Argentina and 10 other Latin
American countries. The company currently has a market cap of $3.1
billion.
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CINEMARK HLDGS (CNK): Free Stock Analysis
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CINEMARK HLDGS (CNK): Free Stock Analysis
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