National CineMedia Inc. (NCMI) Earnings Overview: Q1 2024 Performance Analysis

GuruFocus Research

6 May 2024 at 5:43 pm·3-min read

Revenue: Reached $37.4 million, up 7.2% year-over-year, exceeding the estimated $34.73 million.
Net Loss: Reported at $34.7 million, improved from a net loss of $45.5 million year-over-year, but was greater than the estimated net loss of $10.2 million.
Earnings Per Share (EPS): Reported a loss of $0.36 per diluted share, significantly more than the estimated loss of $0.08 per share.
Operating Loss: Improved to $22.7 million from $30.6 million in the previous year.
Adjusted OIBDA: Improved to negative $5.7 million from negative $10.9 million year-over-year.
Free Cash Flow: Highlighted as the highest in the last 15 quarters, specific figures not disclosed.
Future Outlook: Expects Q2 2024 revenue to be between $49.5 million and $51.5 million, with Adjusted OIBDA between $3.5 million and $4.5 million.

Warning! GuruFocus has detected 8 Warning Signs with NCMI.

National CineMedia Inc. (NASDAQ:NCMI) disclosed its financial outcomes for the first quarter ended March 28, 2024, through its recent 8-K filing on May 6, 2024. The company, a leader in the U.S. cinema advertising sector, reported a revenue increase and a significant reduction in operating loss compared to the previous year, signaling a slow yet potential recovery from the pandemic's impacts.

National CineMedia Inc. (NCMI) Earnings Overview: Q1 2024 Performance Analysis

About National CineMedia Inc.

National CineMedia Inc. operates the largest cinema advertising network in the U.S., engaging audiences through its Noovie pre-show on over 18,200 screens. The company's advertising platform also extends to digital and out-of-home campaigns, making it a pivotal player in connecting brands with diverse movie-going audiences.

Q1 2024 Financial Highlights

The company reported a revenue of $37.4 million for the quarter, which is a 7.2% increase from $34.9 million in the same quarter the previous year. This performance slightly exceeds analyst expectations, which projected a revenue of $34.73 million. However, NCMI experienced a net loss of $34.7 million, or $0.36 per diluted share, which did not meet the anticipated earnings per share of -$0.08. This net loss shows a reduction from the previous year's net loss of $45.5 million, or $3.13 per diluted share.

Operational improvements were evident as the operating loss decreased to $22.7 million from $30.6 million year-over-year. Adjusted OIBDA also showed improvement, moving from a negative $10.9 million to a negative $5.7 million.

Strategic Movements and Challenges

CEO Tom Lesinski highlighted the resilience of NCMI's platform, noting significant performance in both the upfront and scatter marketplaces. The company's strategic focus on high-quality video advertising solutions and the implementation of a $100 million share repurchase program underscore its commitment to shareholder value. Despite these positive strides, NCMI faces ongoing challenges such as fluctuating theater attendance and the competitive advertising expenditure landscape.

Looking Ahead: Q2 2024 Projections

For the second quarter of 2024, NCMI anticipates revenue between $49.5 million and $51.5 million, which would mark a decrease from the $64.4 million reported in the second quarter of 2023. Adjusted OIBDA is expected to range from $3.5 million to $4.5 million, compared to $12.5 million in the prior year's corresponding quarter.

Investor and Media Communications

NCMI has scheduled a conference call and webcast for May 6, 2024, to discuss these results and provide more insights into its operations and outlook. This proactive engagement with stakeholders is part of NCMI's strategy to maintain transparency and bolster investor confidence amidst its recovery phase.

Conclusion

While National CineMedia Inc. shows signs of recovery with improved revenue and reduced losses, the company still faces significant challenges that could impact its future performance. Investors and analysts will likely watch closely how NCMI navigates these challenges and capitalizes on its strategic initiatives in the coming quarters.

Explore the complete 8-K earnings release (here) from National CineMedia Inc for further details.

This article first appeared on GuruFocus.

The Smart Investor
4 Singapore Blue-Chip Stocks with the Potential to Grow Their Profits
Here are four blue-chip stocks that may see their profits rising in due course. The post 4 Singapore Blue-Chip Stocks with the Potential to Grow Their Profits appeared first on The Smart Investor.
Barrons.com
Fed Rate Cuts Are Coming. Get Ready for the Stock Market’s Next Phase.
While the Nasdaq Composite is at a record high, some experts believe that a shift is coming in the market.
The Smart Investor
5 Singapore Stocks That Increased Their Dividends by 20% or More
Gunning for higher dividends? Here are five stocks that upped their dividends by 20% or more. The post 5 Singapore Stocks That Increased Their Dividends by 20% or More appeared first on The Smart Investor.
The Smart Investor
Are Singapore REITs Attractive Right Now? Here are 4 Factors You Should Watch Out for
With the REIT sector in the doldrums for the past two years, is there light at the end of the tunnel? The post Are Singapore REITs Attractive Right Now? Here are 4 Factors You Should Watch Out for appeared first on The Smart Investor.
Simply Wall St.
City Developments (SGX:C09) investors are sitting on a loss of 19% if they invested five years ago
Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results...
Reuters
KKR-SingTel consortium frontrunner to buy $1 billion stake in data centre provider, sources say
A consortium of U.S. investment firm KKR and Singapore Telecommunications (SingTel) has emerged as the frontrunner to buy a minority stake worth $1 billion in one of Asia's biggest data centre providers, two sources said. The potential investment in ST Telemedia Global Data Centres (STT GDC) reflects growing interest and demand for data centres across Asia Pacific as nations and companies respond to the boom in artificial intelligence.
The Edge Singapore
Seatrium reports net order book of $25.8 bil in 1QFY2024 business update
Shares in Seatrium closed 18 cents higher or 11.69% up at $1.72 on May 27.
Barrons.com
Bitcoin Slips. Why the Market Is Nervous.
Bitcoin prices slip after a number of wallets linked to Mt. Gox moved billions worth of Bitcoin into a single wallet Tuesday.
Insider Monkey
Forget Magnificent Seven: Hedge Funds are Pouring Money Into This Utility Stock to Cash In On AI Boom
We recently analyzed the top utilities stocks hedge funds are buying to profit from the AI-led boom in the industry. Since Vistra Corp. (NYSE:VST) was part of the list, the stock deserves a deeper look. But first, let’s see why everyone’s taking about AI catalysts for utilities stocks these days. The AI revolution that started with […]
Reuters
Japan net external assets hit record high in 2023, remains world's top creditor
Japan's net external assets rose to a record 471.3 trillion yen ($3 trillion) in 2023, increasing for a sixth straight year, as a weak yen and overseas corporate acquisitions boosted the value of its foreign assets, the Ministry of Finance said on Tuesday. As a result, Japan retained its position as the world's top creditor, followed by Germany with 454.8 trillion of net external assets and China with 412.7 trillion yen as of the end of 2023, according to the ministry. A weak yen, coupled with a rise in direct investment overseas, helped Japan post a 51 trillion yen annual increase in the value of net external assets held by the Japanese government, businesses and individuals.
Reuters
Bond yields climb, stocks under pressure as Fed cut doubts resurface
TOKYO (Reuters) -U.S. Treasury yields pushed to a near four-week peak on Wednesday, lifting their Asia-Pacific counterparts and the dollar while pressuring equities, as data sowed new doubts about the timing and extent of Federal Reserve rate cuts. Benchmark U.S. 10-year yields ticked up as high as 4.568% in Tokyo trading hours, a level not seen since May 3, following poorly received two- and five-year Treasury auctions overnight. Investors were also caught off-guard by a sharp improvement in a U.S. consumer confidence measure for May. Economists had predicted a fourth straight month of weaker confidence, particularly after a tepid reading for the University of Michigan's analogous survey result from Friday.
Investing.com
Alibaba Health surges 13% on strong FY earnings
Investing.com-- Shares of Alibaba Health Information Technology (HK:0241) rose sharply on Tuesday after the firm clocked a sharp jump in its annual earnings on improved margins and strong demand for healthcare services and pharmaceuticals on its platforms.
AFP News
Oil rises, stock markets mixed before key inflation data
Oil prices rose Tuesday on tensions in the Middle East while stock markets wavered as investors awaited key inflation data later this week. "Risk sentiment has faltered in recent weeks, and global stock markets have experienced a mild sell off as the focus shifts to a plethora of economic data that is released this week," said XTB research director Kathleen Brooks.
Benzinga
Jeff Bezos Tells Investors, 'A Single Winning Bet Can More Than Cover The Cost Of Many Losers' — All You Need Is One Win
Jeff Bezos, one of the wealthiest and most successful individuals, often shared valuable lessons in his annual letters to Amazon shareholders before retiring as CEO. While these letters focused on Amazon, they also provided universal insights applicable to investors everywhere. A key piece of advice from Bezos' 2018 letter encapsulates his approach to risk and reward. He wrote, "The good news for shareowners is that a single big winning bet can more than cover the cost of many losers." This stat
Simply Wall St.
Olam Group (SGX:VC2) investors are sitting on a loss of 15% if they invested five years ago
Olam Group Limited ( SGX:VC2 ) shareholders should be happy to see the share price up 27% in the last quarter. But if...
Barrons.com
Nvidia Stock Got an Elon Musk Boost. It’s Narrowing the Valuation Gap With Apple.
Elon Musk’s xAI says it raised $6 billion in its latest funding round. Plenty of that cash should flow to Nvidia.
Reuters
In the Market: In Asia, people ask, how do I derisk from America?
A European private wealth manager in Hong Kong told me last week he recently got the catalyst he needed to land a Taiwanese billionaire's account: geopolitics. The billionaire was down to two major wealth managers -- UBS and JPMorgan Chase -- after Credit Suisse’s demise last year. In recent years, as the Sino-U.S. saber rattling has increased, I have repeatedly heard from sources in the United States about how companies and investors are de-risking from China, building resiliency in their supply chains, reducing their exposure and putting a higher risk premium to business there.
Reuters
Meme stock GameStop climbs after raising $933 million in share sales
The stock has since lost 70% of its value up to Friday's close, taking GameStop's market value to $5.82 billion. Earlier this month, GameStop said it expected its first-quarter net sales to drop to between $872 million and $892 million, from $1.24 billion a year ago. About 20.5% of GameStop's publicly available shares were in a short position, data from analytics firm Ortex Technologies showed.
Benzinga
FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse"
Austan Goolsbee, President of the Chicago Federal Reserve Bank, highlighted that consumer delinquencies are among the most worrisome economic indicators currently being monitored. His concerns now appear prescient as new data reveal a significant uptick in delinquency rates in the first quarter of 2024. "If the delinquency rate of consumer loans starts rising, that is often a leading indicator that things are about to get worse," Goolsbee stated. Recent figures from the Federal Reserve published
Moneywise
'Let’s punish predatory short selling': RFK Jr. invests $24,000 in GameStop, promises Wall Street reforms
Meme stocks investors have won an unlikely ally.

Straits Times Index

Nikkei

Hang Seng

FTSE 100

Bitcoin USD

CMC Crypto 200

S&P 500

Dow

Nasdaq

Gold

Crude Oil

10-Yr Bond

FTSE Bursa Malaysia

Jakarta Composite Index

PSE Index