Why AMC Networks’ Stock Is Down 20% Over The Last Month

by Trefis Team
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Entertainment company AMC Networks (NASDAQ: AMCX) has seen its stock price decline by almost 20% over the last month. The decline is likely driven by a mixed Q3 2019 earnings report by the company, with revenues coming in below street estimates, although EPS was better than expected. The company’s core National Networks business– which includes its 5 programming networks and its television production business – has been facing headwinds amid weak ad and subscription revenues. Revenues for the segment, which accounts for over 75% of the company’s total revenue, declined by about 2% year-over-year over the first 9 months of 2019.

We ‘step back’ from these recent swings to review AMC Networks’ performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Did AMC Networks’ Stock Decline Last Month reviews the near term reasons and the big picture.

The context for the last few years:

A closer look At AMC Networks’ Total Revenues over the last few years and the outlook 

Total Revenues for AMC Networks moderately increased from $2.81 Bil in 2017 to $2.97 Bil in 2018; an increase of 5.92%. This compares with Total Revenues growth of:

  • 18.6% in 2015
  • 6.77% in 2016
  • 1.82% in 2017

We expect Total Revenues growth to be 3.5% in 2019, driven by the International and Other business, although the core National Networks business is likely to decline.

A closer look At AMC Networks’ Total Expenses over the last few years and the outlook

Total Expense for AMC Networks increased from $2.17 Bil in 2017 to $2.35 Bil in 2018; an increase of 8.61%.

This compares with Total Expense growth of:

  • 12.3% in 2015
  • 15.1% in 2016
  • -5.89% in 2017

We expect Total Expense growth to be 3.8% in 2019.

How does AMC Networks’ Revenue Growth compare with rivals?

For more information on how AMC Networks’ Revenue Growth compares with Disney and Viacom, view our interactive dashboard analysis.

How has  AMC Networks’  EBT trended?

EBT for AMC Networks decreased slightly by -3.14% from $640 Mil in 2017 to $620 Mil in 2018. We expect EBT to increase by 2.5% in 2019 to $635 million.

How has AMC Networks’ Net Income and EPS trended?

For more information on AMC Networks’ Net Income and EPS, view our interactive dashboard analysis.

 

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