National CineMedia, Inc. NCMI reported stellar results for its fourth quarter and introduced a fresh $100 million share repurchase program.
The company’s operating revenue soared to $90.9 million, trumping the $81.1 million consensus. Earnings per share of 24 cents outshined the 9 cents consensus, according to data from Benzinga Pro.
Projections for the first quarter of 2024 indicate estimated revenue of $34.5 million to $35.5 million (compared to the consensus of $32.47 million) and an anticipated adjusted OIBDA loss ranging from $(7.5) million to $(6.5) million.
Reflecting on the previous year, Tom Lesinski, CEO of NCM stated, “In 2023, NCM effectively reaffirmed cinema’s significance for top-tier advertisers, as films fueled cultural discussions and the box office hit its peak since 2019. The robust performance in the fourth quarter, marked by a 43% surge in active national advertisers and record revenue per attendee, resulted in stellar adjusted OIBDA figures, surpassing our initial guidance.”
The company’s Board of Directors sanctioned a new share repurchase scheme, allowing the acquisition of up to $100 million in shares until April 1, 2027.
On Tuesday, NCM shares climbed by 24.5% to reach $5.26.
Following the earnings release, analysts adjusted their price targets for National CineMedia:
- B. Riley Securities raised the price target on National CineMedia from $4.5 to $6.75. Analyst Eric Wold upgraded the stock from Neutral to Buy.
- Wedbush increased the price target on National CineMedia from $4.5 to $5.5, with analyst Michael Pachter maintaining a Neutral rating.
For Further Reading: Core & Main, Caleres And 3 Stocks To Watch Heading Into Tuesday
