National CineMedia (NASDAQ:NCMI) Issues Earnings Results

by · The Markets Daily

National CineMedia (NASDAQ:NCMI – Get Free Report) released its earnings results on Tuesday. The business services provider reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.01), FiscalAI reports. The business had revenue of $58.40 million for the quarter, compared to analyst estimates of $59.34 million. National CineMedia had a negative return on equity of 1.29% and a negative net margin of 3.05%.

Here are the key takeaways from National CineMedia’s conference call:

  • NCM agreed to acquire Captivate for $275 million, creating a premium video and digital out-of-home platform with more than 48,000 screens across theaters, offices, and residential properties.
  • Second-quarter revenue rose 12.7% year over year to $58.4 million, while Adjusted OIBDA tripled to $2.1 million; local advertising revenue increased 48.4% and programmatic revenue grew 45%.
  • Captivate generated $64 million of 2025 revenue and $19.3 million of Adjusted EBITDA, and management expects at least $3.5 million in annual cost synergies plus additional cross-selling and programmatic opportunities.
  • The acquisition will be financed with $275 million of new term debt, bringing expected net leverage to approximately 3.9 times at close; NCM is pausing dividends and share repurchases to prioritize debt repayment.
  • NCM completed its operational transformation and remains on track for approximately $11 million in annualized cost savings, but it suspended forward guidance because the transaction could close during the third quarter and create partial-period reporting complications.

National CineMedia Stock Performance

NASDAQ NCMI opened at $2.22 on Thursday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.03. The stock has a market cap of $208.19 million, a price-to-earnings ratio of -24.66 and a beta of 1.38. The business has a fifty day moving average of $3.76 and a 200-day moving average of $3.50. National CineMedia has a fifty-two week low of $2.16 and a fifty-two week high of $5.03.

Insider Buying and Selling

In other news, insider Maria Vg Woods sold 12,058 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $3.77, for a total value of $45,458.66. Following the transaction, the insider directly owned 163,162 shares in the company, valued at $615,120.74. This trade represents a 6.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On National CineMedia

A number of hedge funds have recently made changes to their positions in NCMI. Quantbot Technologies LP acquired a new position in shares of National CineMedia during the 3rd quarter valued at $34,000. Graham Capital Management L.P. acquired a new position in shares of National CineMedia during the fourth quarter worth about $40,000. Strs Ohio acquired a new position in shares of National CineMedia during the first quarter worth about $43,000. Jump Financial LLC purchased a new stake in shares of National CineMedia in the fourth quarter worth about $53,000. Finally, BNP Paribas Financial Markets grew its stake in shares of National CineMedia by 103.2% in the third quarter. BNP Paribas Financial Markets now owns 12,895 shares of the business services provider’s stock valued at $58,000 after buying an additional 6,549 shares in the last quarter. Hedge funds and other institutional investors own 69.49% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on NCMI. Zacks Research downgraded National CineMedia from a “hold” rating to a “strong sell” rating in a research note on Tuesday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of National CineMedia in a research note on Friday, August 7th. Wall Street Zen upgraded shares of National CineMedia from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 6th. Wedbush set a $5.00 price objective on shares of National CineMedia and gave the stock an “outperform” rating in a report on Wednesday. Finally, Barrington Research set a $4.25 target price on shares of National CineMedia in a research report on Wednesday. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, National CineMedia has an average rating of “Hold” and an average price target of $4.81.

View Our Latest Analysis on National CineMedia

About National CineMedia

(Get Free Report)

National CineMedia, Inc is a leading U.S. out-of-home media company specializing in cinema advertising. The firm operates a proprietary network that delivers high-impact advertising content to moviegoers across a broad footprint of theaters, offering brands a targeted and immersive way to engage audiences in a captive, distraction-free environment.

Founded in 2003 and headquartered in Centennial, Colorado, National CineMedia began as a joint venture among several major exhibition chains.

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