Cineplex Third Quarter 2023 Earnings: Beats Expectations

Cineplex (TSE:CGX) Third Quarter 2023 Results

Key Financial Results

• Revenue: CA$463.6m (up 36% from 3Q 2022).
• Net income: CA$29.7m (down 3.6% from 3Q 2022).
• Profit margin: 6.4% (down from 9.1% in 3Q 2022).
• EPS: CA$0.47 (down from CA$0.49 in 3Q 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Cineplex Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 21%.

Looking ahead, revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Entertainment industry in Canada.

Performance of the Canadian Entertainment industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 4 warning signs for Cineplex (3 are significant!) that you need to be mindful of.

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