Earnings Central: FireEye Inc (FEYE), AMC Entertainment Holdings Inc (AMC)

There has been a lot of action on Wall Street this week with new earnings reports and events. Find out the latest analyst news on cyber security FireEye Inc (NASDAQ:FEYE) and movie theater company AMC Entertainment Holdings Inc (NYSE:AMC).

FireEye Inc

Oppenheimer’s top analyst Shaul Eyal reiterates an Outperform rating on shares of FireEye, with a price target of $23.00, after the company released its second-quarter results, beating estimates across the board in revenue, billings, and operating margins.

FireEye reported revenues of $185.5 million beating consensus’ estimates of $176.4 million and above its guidance. Billings of $172.0 million came in above the Street’s $167.5 million estimate while operating margins of (3%) exceeded consensus’ estimate of (9.3%).

Eyal commented, “We’re encouraged by another set of positive results. We believe FEYE’s opportunities for growth remain solid and its path to profitability goal in tact […] We believe FEYE’s turnaround strategy is off to a good start, and multiple near-term drivers (Helix adoption and 2H17 appliance refresh opportunities) could contribute to FEYE’s continued strong cadence in 2017.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a yearly average return of 11.5% and a 63.5% success rate. Eyal has a -11.6% average return when recommending FEYE, and is ranked #125 out of 4638 analysts.

Out of the 30 analysts polled in the past 12 months, 19 rate FireEye Inc stock a Hold, while 11 rate the stock a Buy. With a return potential of 6.9%, the stock’s consensus target price stands at $16.14.

AMC Entertainment Holdings Inc

AMC Entertainment shares lost one-quarter of their value today, after the company provided preliminary second-quarter results that fell short of Street expectations. Specifically, the company expects Q2 revenue of $1,200 – 1,204 million and adjusted EBITDA of $134 – 136 million, compared to consensus estimates of $1,249 million and $199 million, respectively.

In reaction, Wedbush analyst Michael Pachter slashed his price target to $22.75 (from $36.00), while keeping his rating at Outperform. (To watch Pachter’s track record, click here)

Pachter commented, “Despite the vast potential for growth, AMC’s disappointing pre-announcement in Q2 gives us reason to be concerned about execution. Given AMC’s FY:17 guidance, we now expect EBITDA margins well below AMC’s average. We think AMC will remain a show me story until management demonstrates that the “new normal” is EBITDA margins of 18% or higher. With that said, AMC is in the early innings of implementing initiatives that will allow concessions and admissions revenue growth through improving its asset base, offering a high return on investment opportunity.”

“AMC is ahead of other major exhibitors at piloting and rolling out differentiated theatre offerings such as dine-in theatres, luxury reseating, and alcoholic beverages. Results of these initiatives thus far have shown significant returns, in some cases above 100% cash-on-cash returns after one year. We view AMC’s expanded theatre portfolio as a sufficiently large enough pool of these high-return opportunities, and AMC should be able to achieve revenue growth faster than the industry and drive operating margin expansion over the next several years, particularly as it is investing in its newly acquired theaters,” the analyst continued.

Out of the 12 analysts polled in the past 3 months, 9 rate AMC Entertainment stock a Buy, 2 rate the stock a Hold and 1 recommends a Sell. With a return potential of 109%, the stock’s consensus target price stands at $32.48.


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