Cinemark’s stock drops, as revenue tumbles 96% to miss expectations

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Shares of Cinemark Holdings Inc. fell 2.5% in premarket trading Thursday, after the movie theater operator reported a narrower-than-expected third-quarter loss but revenue that fell about 96% to miss forecasts, with the company citing the “unprecedented impact” of the COVID-19 pandemic on the theatrical exhibition industry. The company swung to a net loss of $147.6 million, or $1.25 a share, from net income of $31.4 million, or 27 cents a share, in the year-ago period. That beat the average loss estimate of analysts surveyed by FactSet of $1.35 a share. Revenue plunged 95.6% to $35.5 million, below the FactSet consensus of $87.0 million. Admissions revenue dropped 96.7% to $14.9 million to miss the FactSet consensus of $25.6 million, and concession revenue declined 96.9% to $9.1 million to miss expectations of $15.8 million. As of Sept. 30, Cinemark had nearly 90% of its domestic theaters operating, with limited hours, and showing library content and some new releases. The stock has plummeted 74.8% year to date through Wednesday, while the S&P 500 has gained 6.6%.
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