AMC Entertainment Holdings Stock Quote and Forecast: AMC earnings preview

AMC is one stock we are well familiar with by now, and we are due to become more familiar with the stock after the close tonight when earnings for Q3 will be released. The stock has gained some new fans as the meme stock rally reignited last week, but some old AMC apes still prowl the social media chatrooms like a silverback urging followers to hold and not sell, diamond hands, etc. AMC has been seeing its attendance figures surge recently as the world reopens and we flock back to in-person everything. Gyms are full, shops are full, and it appears cinemas are also full.

Last Friday's announcement that Pfizer (PFE) has a pill for covid sent reopening stocks surging. AMC did really benefit, and so it should have in our view. A pill is much more acceptable than a vaccine and makes it more and more likely that the worst of covid is now behind us, and perhaps this pill could even open the way toward extinction for covid. At the very least it will just become an endemic disease with very treatable options. 

AMC popped 4% on Friday, holding above $40, and awaiting a confirmation of recent attendance figures from the earnings. 

AMC chart, 15-minute

AMC stock news

For those earnings tonight, earnings per share (EPS) are expected to come in at -$0.54, and revenue for the quarter is expected to reach $708.25 million. The last set of results in August were solid with an EPS beat of 24% and a revenue beat of 16%. The same again would suit bulls nicely. Last week AMC announced the domestic and international attendance figures were the best since the pandemic began nearly 20 months ago. With the holiday season fast-approaching, it would be anticipated that these attendance figures would continue to show strong growth.

In a side move announced last week, AMC said it was going into the popcorn business. The company plans to sell its popcorn in malls, via delivery, to-go at theatres, and later in 2022 prepackaged microwaveable popcorn in supermarkets.

AMC stock forecast

We have our strong support clearly identified in the AMC chart below at $34.60. Once above this, it is game on for more gains. AMC has tested this level quite a lot and the more it is tested, the weaker it becomes, so just be mindful of that. A break of $34.60 should see old lows at $29.82 tested with strong support then from the VWAP and 200-day moving average in the $27-28 zone. $44.44 is the first resistance to break, and that opens the door for a push to September's $52.79 high. The stock is pretty much neutral in our view heading into resuls, so we expect some catalyst from those. RSI, MACD and stochastics are all pretty much netural as well.