Why Cinemark (CNK) Is Sinking Today

Movie theater operator Cinemark (CNK) is tumbling 13% after the company reported lower-than-expected fourth-quarter earnings per share. However, CNK’s Q4 revenue did come in above analysts’ average estimate, while the firm reinstated its dividend.

A Look at CNK’s Q4 Results

Cinemark generated Q4 EPS of 33 cents, below analysts’ average estimate of 37 cents. However, its revenue climbed 27.5% versus the same period a year earlier to $814.3 million, coming in above analysts’ mean outlook of $790.757 million.

Photo by Myke Simon on Unsplash

Also noteworthy is that its admissions revenue surged 26% year-over-year while its concession revenue climbed 29% YOY.

Dividend Restored

The movie theater operator announced that it would resume paying a dividend after almost five years of failing to do so. Specifically, it will pay a quarterly dividend of 8 cents per share.

CNK’s Comments

“The enduring and timeless consumer appeal of shared, cinematic experiences that movie theaters uniquely provide was reinforced once again in 2024 as North American industry box office of approximately $8.8 billion far exceeded expectations and delivered multiple all-time records,” CEO Sean Gamble said in a statement.

The Recent Price Action of CNK Stock

In the last month, the shares have dropped 3%, while they are down 13% in the last three months. CNK has fallen 8% so far in 2025.

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Disclosure: None. This article is originally published at Insider Monkey.