Cinemark Holdings Inc. (CNK) just hit a new 52-week high at $15.28 in response to the compamny’s strong Q3 resulte from early November that saw outsized gains from Latin America.
Company Description
Cinemark Holdings, Inc. and its subsidiaries own and operate a chain of movie theatres in the united States and Latin America, with over 4,900 screens. The company has a market cap of $1.66 billion.
Third-Quarter Results
Revenue was up 4.3% from last year to $496.8 million. Earnings also came in strong at 20 cents, 4 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last four quarters by an average of 5 cents, or 35%.
Cinemark CEO Alan Stock noted that the company’s growth had outpaced the domestic box office and that attendance was up 4.5% from last year. The company also saw strong growth in its South American markets, which outpaced sales growth from domestic markets.
Estimates
Estimates have been trending higher for most of the last few months, with the current year adding 13 cents and moving to 72 cents. The next-year estimate has added 8 cents in the same time, now standing at 88 cents, a 22% growth projection.
After the string of recent gains, shares of CNK are trading at a premium to the overall market with a forward P/E of 21X.
The Chart
Shares of CNK broke above a long-term level of resistance in early November on the strong Q3 results, recently surging to a new 52-week high above $15. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
