Analyst: Regal Entertainment Hit By Dragging Summer Box Office
The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
Regal Entertainment (NYSE:RGC) will report second-quarter 2014 results after the market close on July 24 and host a conference call at 1:30 p.m. Pacific (dial-in: 877-407-0778, webcast: REGmovies.com).
We expect Q2:14 results in line with our recently revised estimates for revenue of $828 million versus consensus of $811 million and for earnings per share of 32 cents versus consensus of 29 cents. We expect a drag on revenue per screen to continue from the screens acquired in the past several quarters. We estimate that Regal’s Q2:14 grew market share due to additional screens from these acquisitions.
Q2:14 box office was down 6.6 percent, dragged down by a weak May and June after a strong April. Year-over-year, April was up 21.5 percent, May ended down 11.9 percent, and June ended down 16.3 percent.
Q3:14 is off to a slow start, down 36 percent quarter-to-date. The Fourth of July weekend was the worst Independence Day weekend since 1999, and down over 40 percent year-over-year. Poor results were due to several factors, including a Friday Fourth of July shortening the weekend and large viewership of the World Cup.