National CineMedia Q3 revenue misses analyst estimates on cinema advertising decline
Overview
U.S. cinema advertising platform's Q3 revenue fell 3.2% yr/yr, missing analyst expectations
Company posted larger net loss and operating loss compared to prior year
Company completed Captivate acquisition, expanding digital screen network
Outlook
Company expects Q4 2026 revenue of $117.0 mln to $124.0 mln
Company sees Q4 2026 Adjusted OIBDA between $42.0 mln and $48.0 mln
Result Drivers
CINEMA ADVERTISING DECLINE - Co reported lower cinema advertising revenue, contributing to overall revenue decrease
HIGHER OPERATING COSTS - Increased theater exhibition fees and administrative costs contributed to wider operating loss
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $61.4 mln | $71.66 mln (5 Analysts) |
Q3 Loss Per Share | $0.18 | ||
Q3 Net Loss | $17.2 mln | ||
Q3 Operating Income | -$21.6 mln | ||
Q3 Pretax Loss | $59.5 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for National Cinemedia Inc is $4.25, about 156% above its November 9 closing price of $1.66
The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 119 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)