Cinemark Holdings Crushes Earnings Estimates

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Cinemark Holdings (NYS: CNK) filed its 10-K on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cinemark Holdings met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins grew, net margins dropped.

Revenue details
Cinemark Holdings reported revenue of $535.9 million. The 14 analysts polled by S&P Capital IQ wanted to see sales of $533.7 million on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $524.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.23. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.19 per share on the same basis. GAAP EPS of $0.16 for Q4 were 50% lower than the prior-year quarter's $0.32 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.4%, 60 basis points better than the prior-year quarter. Operating margin was 12.1%, 40 basis points better than the prior-year quarter. Net margin was 3.4%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $537.4 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $1.51.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 93 members out of 115 rating the stock outperform, and 22 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Cinemark Holdings a green thumbs-up, and six give it a red thumbs-down.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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