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Here's How Cinemark Holdings, Inc. Shares Rose 15.7% Last Month

Cinemark's corporate logo, incorporating the banners of subsidiaries Century Theatres, CineArts, Tinseltown, and Rave Cinemas.

What happened

Shares of Cinemark Holdings (NYSE: CNK) gained 15.7% in February 2018, according to data from S&P Global Market Intelligence . The movie theater chain smashed Wall Street's earnings estimates in last month's fourth-quarter report, and investors reacted with a big sigh of relief.

So what

In the fourth quarter, Cinemark's GAAP (generally accepted accounting principles) earnings rose 24% year over year to $0.82 per share. The average analyst would have settled for $0.47 per share. On the top line, revenues increased 7% to $750 million, just ahead of the Street's $745 million target.

In all fairness, analysts had not been counting on a one-time $45 million tax benefit in this quarter, skewing the per-share result $0.39 higher. Without this taxation quirk, Cinemark would have seen adjusted earnings of $0.43 per share.

Cinemark's corporate logo, incorporating the banners of subsidiaries Century Theatres, CineArts, Tinseltown, and Rave Cinemas.

Image source: Cinemark.

Now what

Cinemark's fourth quarter enjoyed the launch of another shoo-in Star Wars blockbuster, paving the way to a 0.8% year-over-year attendance boost despite significantly higher ticket and concession prices. The first quarter also looks good thanks to the record-breaking Black Panther premiere , and 2018 promises a generally promising film slate.

That being said, I still don't see myself owning Cinemark shares anytime soon, as the cinema sector at large is fighting for its very life against streaming video services and high-quality home theater systems.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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