Cinemark (CNK) has begun benefitting from a more consistent release slate over the next several quarters, while also gaining from theater investments like laser projectors, premium seats, as well as strategic pricing on ticket and concessions, Wedbush said in a Tuesday note.
With Cinemark slated to release its Q2 earnings on Thursday, Wedbush raised its quarterly revenue and EPS estimate to $1.04 billion and $1.13 from $959 million and $0.99 previously.
Wedbush further modeled domestic revenue to rise 11% year-on-year to $844 million, with attendance per screen up 9% and revenue per attendee up 3% to $21.14, according to the note.
Wedbush said it expects annual increases and ongoing share repurchases under the company's buyback program, while noting that the company's $0.09 per share quarterly dividend payment remains well below its pre-pandemic level of $0.34.
Wedbush raised its price target on the company's stock to $40 from $37 and kept its outperform rating.
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