Led by Guardians of the Galaxy, this past weekend's box office numbers provided some hope that Q3 may not be as bad as many initially expected. We note that there is still a long way to go. However, Guardians of the Galaxy's $94MM not only broke the first-week of August record of $69.3MM, held by The Bourne Ultimatum since 2007, but also blew away the experts' $75MM estimate. According to Box Office Mojo, this weekend's $172.6MM was up 26.1% from the prior week and up 40.0% Y/Y. Again, there is still a long way to go, but a start like this is a bit encouraging.
Carmike (CKEC) will report Q2 numbers on Monday after the close. And Cinemark (CNK) will report on Tuesday before the open. While their Q2 numbers may miss expectations on the top-line (similar to AMC and RGC), the good box office news of this past weekend might renew faith for some investors. We continue to rate AMC as 'neutral', CKEC as overvalued, and CNK and RGC as undervalued.
Our thoughts regarding these movie theatre companies and the overall space can be found here:
Our thoughts regarding these movie theatre companies and the overall space can be found here:
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