AMC Entertainment Holdings Inc (NYSE:AMC) shares are climbing on Tuesday. The rally comes hours before the theater giant reports first-quarter financial results.
Investors are weighing a debt-to-equity exchange alongside a partnership with Netflix Inc (NASDAQ:NFLX).
• AMC Entertainment Hldgs stock is showing exceptional strength. Why are AMC shares rallying?
Debt Exchange Strengthens Balance Sheet
AMC disclosed in a Monday U.S. Securities and Exchange Commission filing that it will settle a significant exchange of its senior secured exchangeable notes due 2030. Holders of approximately $155.8 million in notes from subsidiary Muvico, LLC, delivered voluntary exchange notices.
The company expects to issue roughly 129.7 million shares of Class A common stock on Tuesday to settle the bulk of this exchange.
Netflix Partnership Hits High Gear
The stock momentum also follows a Saturday announcement from CEO Adam Aron. He revealed a landmark deal for a wide global release of Greta Gerwig's “Narnia” on Feb. 12.
The film will carry a traditional 49-day exclusive theatrical window. Aron noted on X, “It should not be lost on anyone the significance of Netflix trying a real global release of a major film title.”
Earnings Expectations and Box Office Momentum
Analysts expect AMC to report first-quarter revenue of $974.61 million, per Benzinga Pro data. This marks an increase from $862.50 million in the prior-year period.
The domestic box office rose 24.8% year-over-year in the first quarter, reaching $1.78 billion. This growth, paired with record-breaking merchandise sales for “The Super Mario Galaxy Movie.”
AMC Stock Price Activity: AMC Entertainment Hldgs shares were up 3.10% at $1.50 on Tuesday, according to Benzinga Pro data.
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