AMC Networks (NASDAQ:AMCX) Releases Earnings Results, Misses Estimates By $0.21 EPS

AMC Networks (NASDAQ:AMCX) issued its quarterly earnings data on Thursday. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.21), FiscalAI reports. The firm had revenue of $547.50 million during the quarter, compared to analysts’ expectations of $555.74 million. AMC Networks had a return on equity of 8.70% and a net margin of 2.28%.The firm’s quarterly revenue was down 8.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.69 EPS.

Here are the key takeaways from AMC Networks’ conference call:

• The Walking Dead licensing deal with Netflix covers all seven series and 371 episodes under a five-year, co-exclusive global agreement worth $500 million in contracted fees. AMC expects approximately $200 million–$225 million of revenue recognition in both 2026 and 2027, with cash payments extending through 2031.
• AMC raised its 2026 guidance to consolidated revenue of $2.4 billion–$2.45 billion, adjusted operating income of $410 million–$420 million, and free cash flow of approximately $220 million, partly reflecting the Netflix agreement.
• Second-quarter revenue fell 9% year over year to $547 million and adjusted operating income was $46 million, while domestic subscription revenue declined 5%, affiliate revenue dropped 17%, and subscriber acquisition was below expectations in the first half.
• Management cited improving engagement and retention across streaming services despite price increases, strong digital advertising growth, and ratings gains across most linear networks, including a 21% prime-time increase at WE tv.
• AMC ended the quarter with approximately $464 million of cash, $1.3 billion of net debt, and 4.1x net leverage after paying down its remaining Term Loan A; management said leverage should peak in the second quarter and remains focused on debt reduction.

AMC Networks Stock Performance

Shares of AMC Networks stock traded down $0.54 during midday trading on Thursday, hitting $9.71. The company had a trading volume of 1,115,304 shares, compared to its average volume of 482,088. The stock has a market cap of $426.56 million, a price-to-earnings ratio of 16.18 and a beta of 1.31. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 1.75. The company has a fifty day simple moving average of $9.92 and a 200 day simple moving average of $8.58. AMC Networks has a 12-month low of $5.41 and a 12-month high of $11.13.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on AMCX shares. Morgan Stanley set a $7.00 target price on shares of AMC Networks in a research report on Thursday, April 30th. Zacks Research downgraded AMC Networks from a “hold” rating to a “strong sell” rating in a research report on Thursday, July 23rd. Finally, Weiss Ratings raised AMC Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday. Two investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $8.50.

Institutional Trading of AMC Networks

Large investors have recently bought and sold shares of the stock. First Trust Advisors LP lifted its stake in shares of AMC Networks by 39.1% during the fourth quarter. First Trust Advisors LP now owns 16,646 shares of the company’s stock worth $158,000 after buying an additional 4,683 shares during the period. MetLife Investment Management LLC grew its holdings in shares of AMC Networks by 24.4% during the fourth quarter. MetLife Investment Management LLC now owns 13,864 shares of the company’s stock valued at $132,000 after buying an additional 2,715 shares during the last quarter. Mackenzie Financial Corp acquired a new position in shares of AMC Networks in the 3rd quarter valued at $125,000. Mercer Global Advisors Inc. ADV acquired a new position in shares of AMC Networks in the 4th quarter valued at $113,000. Finally, Cerity Partners LLC raised its stake in AMC Networks by 14.1% in the 4th quarter. Cerity Partners LLC now owns 11,903 shares of the company’s stock worth $113,000 after acquiring an additional 1,473 shares during the last quarter. Hedge funds and other institutional investors own 78.51% of the company’s stock.

About AMC Networks

AMC Networks Inc (NASDAQ: AMCX) is a global entertainment company that specializes in the development, production and distribution of premium content for television and streaming platforms. Headquartered in New York City, the company operates a portfolio of pay television channels in the U.S. and abroad, and offers direct-to-consumer streaming services that feature both original programming and licensed fare. AMC Networks is best known for critically acclaimed series such as “Breaking Bad,” “Mad Men” and “The Walking Dead,” and it continues to invest in new scripted and unscripted content across a range of genres.

The company’s core television networks in the United States include AMC, IFC, Sundance TV and WE tv, while its joint venture with BBC Studios supports BBC America.