Nomura Securities Maintains a 'Neutral' on Regal Entertainment (RGC); Raising Estimates After Q2 Beat
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Price: $18.59 -0.54%
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
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Nomura Securities maintains a 'Neutral' on Regal Entertainment (NYSE: RGC) price target of $15.50.
Analyst, Robert Fishman, said, "Regal reported adjusted EPS of $0.25, $0.05 above our and consensus estimates. Slightly lower revenues (-4% Y/Y vs. -3% estimate) were offset by lower total expense growth of -3% (vs. our -1% estimate). Revenue declines were driven by -3% growth in admission revenue per screen (vs. -1% estimate), offset by less of a decline in concession revenue per screen (-2% vs. -4% estimate). Adjusted EBITDA declined by -11% Y/Y (vs. -14% estimate on company definition), with 150bps of margin compression. In regards to the recent tragedy in Colorado, we believe it is too early to gauge the longer term impact on attendance. We continue to believe the 2H release slate is stronger than last year, especially in 4Q. We are increasing our 2012 EPS estimates by $0.05 to $0.95 and our adj. EBITDA growth from 17% to 18%. While we remain cautious on 2013 and longer term U.S. box office trends, Regal should benefit from a strong 2012 second half release slate."
FY12E EPS from $0.90 to $0.95; FY13E EPS from $0.82 to $0.83.
For an analyst ratings summary and ratings history on Regal Entertainment click here. For more ratings news on Regal Entertainment click here.
Shares of Regal Entertainment closed at $13.13 yesterday, with a 52 week range of $11.29-$14.74.
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Analyst, Robert Fishman, said, "Regal reported adjusted EPS of $0.25, $0.05 above our and consensus estimates. Slightly lower revenues (-4% Y/Y vs. -3% estimate) were offset by lower total expense growth of -3% (vs. our -1% estimate). Revenue declines were driven by -3% growth in admission revenue per screen (vs. -1% estimate), offset by less of a decline in concession revenue per screen (-2% vs. -4% estimate). Adjusted EBITDA declined by -11% Y/Y (vs. -14% estimate on company definition), with 150bps of margin compression. In regards to the recent tragedy in Colorado, we believe it is too early to gauge the longer term impact on attendance. We continue to believe the 2H release slate is stronger than last year, especially in 4Q. We are increasing our 2012 EPS estimates by $0.05 to $0.95 and our adj. EBITDA growth from 17% to 18%. While we remain cautious on 2013 and longer term U.S. box office trends, Regal should benefit from a strong 2012 second half release slate."
FY12E EPS from $0.90 to $0.95; FY13E EPS from $0.82 to $0.83.
For an analyst ratings summary and ratings history on Regal Entertainment click here. For more ratings news on Regal Entertainment click here.
Shares of Regal Entertainment closed at $13.13 yesterday, with a 52 week range of $11.29-$14.74.
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