National Cinemedia Down 19.13% To $1.44 After Earnings Beat

National CineMedia, Inc. (NCMI) beat out earnings estimates for Q2 2022 this afternoon.

The consensus among analysts for National Cinemedia was for an earnings per share (EPS) loss of $0.07 per share. The firm was able to surpass those projections, reporting an EPS loss of $0.01 per share, a positive surprise of $0.06 (86%). Profits rose 96% year-over-year after reporting an EPS loss of $0.28 per share in its year-ago quarter. The positive growth rate signals that the Communication Services company is performing well amid recent economic conditions.

Analyst projections for National Cinemedia revenue came in at a consensus of $65 million. Second-Quarter revenues surpassed estimates for $67.1 million by $2.1 million (3%). The company achieved 379% growth year-over-year compared to the firm's revenue of $14 million from the year-ago quarter. The lower earnings growth relative to revenue signals National Cinemedia has not been able to improve its profit margin.

The stock is down 19.13% to $1.44 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 79. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

National CineMedia Inc is a holding company that operates a digital in-theatre media network across North America. The company displays ads in movie theaters, online, and through mobile video. National CineMedia's most important operation is First Look, its prefeature programming that plays before a movie and related trailers start. The company also operates an online and mobile network in combination with movie theaters that include movie content, trailers, showtimes, and other features.