Why AMC Entertainment Stock Rallied 20% at the Open
Shares of movie theater chain AMC Entertainment Holdings (NYSE: AMC) rose a dramatic 20% in early trading on Nov. 3. That comes after the stock sold off the day before, when it announced plans to sell stock to raise much-needed cash. But the earnings news that led to the advance today wasn't actually very good.
First the good news. AMC reported revenue of roughly $120 million in the third quarter, which handily beat Wall Street expectations of just $84 million. That's a positive, for sure. Another bit of upbeat news from the quarterly update was that the company now has roughly 90% of its U.S. theaters open, with 73% of its international screens up and running. After those positive bits, however, most of the update is pretty grim reading.
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Source Fool.com
