National CineMedia (NASDAQ:NCMI) Posts Quarterly Earnings Results, Beats Expectations By $0.32 EPS

National CineMedia (NASDAQ:NCMI) announced its earnings results on Tuesday. The business services provider reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.32, FiscalAI reports. National CineMedia had a negative net margin of 10.69% and a positive return on equity of 7.62%. The business had revenue of $61.40 million during the quarter, compared to the consensus estimate of $72.22 million.

Here are the key takeaways from National CineMedia’s conference call:

• Q3 revenue excluding Captivate fell about 7% year over year to $58.8 million, while adjusted OIBDA dropped to $3.3 million from $10.2 million. NCM attributed the shortfall to softer early-quarter attendance, later-arriving movie hits that were harder to monetize, and advertisers shifting spending to the FIFA World Cup.
• Management forecast Q4 revenue of $117 million to $124 million and adjusted OIBDA of $42 million to $48 million, citing a stronger film slate and a full quarter of Captivate results. Captivate bookings were more than 30% ahead of the prior-year pace; management said NCM’s cinema revenue was tracking roughly in line with last year.
• The Captivate acquisition added more than 27,000 office and residential screens, expanding NCM’s network to about 48,000 screens and broadening its reach beyond cinema advertising. Management sees opportunities to bundle the networks and expects more than $3.5 million in annual run-rate acquisition synergies within the first year after closing.
• NCM said operational transformation savings are ahead of plan, with expected 2026 savings raised to more than $7.5 million and approximately $11 million in annualized run-rate savings expected once fully realized. The company also said it has already achieved more than 60% of its targeted Captivate synergies.
• NCM reported a trailing 12-month net leverage ratio of about 4.4 times and set a long-term target of 2.5 to 3 times, with debt reduction dependent primarily on free cash flow and realizing planned savings.

National CineMedia Stock Up 14.8%

NCMI stock opened at $1.86 on Thursday. National CineMedia has a one year low of $1.40 and a one year high of $4.33. The stock has a market capitalization of $174.43 million, a PE ratio of -6.41 and a beta of 1.75. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.84 and a current ratio of 1.84. The company has a fifty day moving average of $2.09 and a 200-day moving average of $3.09.

Insider Buying and Selling at National CineMedia

In other news, insider Maria Woods sold 12,189 shares of National CineMedia stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $2.09, for a total value of $25,475.01. Following the sale, the insider owned 176,806 shares of the company’s stock, valued at $369,524.54. The trade was a 6.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.70% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Wedbush set a $5.00 price target on National CineMedia and gave the company an “outperform” rating in a research report on Wednesday, August 12th. StoneX decreased their price objective on National CineMedia from $6.00 to $4.00 and set a “buy” rating for the company in a research report on Wednesday. Wall Street Zen downgraded National CineMedia from a “hold” rating to a “sell” rating in a research note on Saturday, November 7th. Weiss Ratings downgraded National CineMedia from a “sell (d+)” rating to a “sell (e+)” rating in a research note on Wednesday. Finally, Zacks Research raised National CineMedia from a “strong sell” rating to a “hold” rating in a report on Wednesday, September 9th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, National CineMedia presently has an average rating of “Hold” and a consensus target price of $4.17.

About National CineMedia

National CineMedia, Inc. (NASDAQ: NCMI) is a media and advertising company focused on cinema-based marketing in the United States. Through its network of movie theaters, the company sells advertising opportunities that allow brands to reach audiences before feature films and throughout the theater environment. Its primary product is the Noovie pre-show, a branded entertainment and advertising program shown on theater screens before movies. National CineMedia also offers on-screen advertising, lobby and other in-theater placements, digital and experiential campaigns, and related marketing solutions designed to connect advertisers with moviegoers.