AMC Networks Records Q4 Losses, Faces Challenges in Entertainment Industry
AMC Networks recorded a loss in Q4 amidst challenges in the entertainment industry. Shares declined and Netflix stock saw a slight increase.
During the fourth quarter, AMC recorded a loss of 50 cents per share, which significantly improved compared to the previous year's loss of $6.11 per share. Additionally, adjusted earnings were reported at 72 cents per share, surpassing Wall Street's estimates of 68 cents. Despite this, it is important to note that this figure has declined from the $2.52 recorded in the previous year.
The entertainment industry has faced a series of challenges in recent months, including strikes by writers and actors, as well as an ongoing shift from traditional television to streaming services. These factors have significantly impacted companies like AMC Networks.
As a result of these developments, shares of AMC Networks experienced a significant decline of 19.1%, reaching $13.79 on Friday. This drop marked the largest decrease since January 27, 2021 when shares dropped 19.3%, according to Dow Jones Market Data. Meanwhile, Netflix stock saw a slight increase of 0.6%, while shares of Walt Disney fell by 1.3%. It is worth noting that Disney recently released a strong earnings report earlier this week.