Carmike Cinemas shares jump after 3-D films, cost controls lead to 4Q profit
By APTuesday, March 2, 2010
Carmike Cinemas shares jump after 4Q profit
NEW YORK — Shares of theater operator Carmike Cinemas Inc. surged Tuesday after the company’s fourth-quarter profit beat expectations.
The stock jumped 90 cents, or 9.5 percent, to $10.40 in afternoon trading. Shares have traded between $1 and $11.54 over the past year.
Late Monday, Carmike said it reversed its fourth-quarter loss, helped by the crowds of moviegoers that came out for 3-D films such as “Avatar” as well as cost controls. It earned 48 cents per share, while the average forecast from analysts called for just 9 cents per share, according to Thomson Reuters.
In a note to investors, Merriman Curhan Ford analyst Eric Wold said Carmike has established itself as a leader in 3-D, which should provide “strong competitive advantage” given movie studios’ focus on releasing 3-D films. He said there are 20 3-D releases slated for release this year, compared with 14 last year.
Wold reiterated a “Buy” rating on the company’s stock.
