Wedbush Cuts Price Target on Regal Entertainment (RGC) Due to Weak Box Office Performance
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Price: $5.45 +4.01%
Rating Summary:
5 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Neutral rating on shares of Regal Entertainment (NYSE: RGC), but is lowering its price target from $14 to $10.50 due to box office performance during Q4.
To go inline with it's new outlook, the firm has lowered its Q4 and FY11 EPS estimates from $0.06 and $0.29 to ($0.02) and $0.21. Sales for Q4 and FY11 are estimated to total $615 million and $2.68 billion.
Wedbush also cut its FY12 EPS and sales estimates from $0.72 and $2.93 billion to $0.52 and $2.76 billion.
An analyst at Wedbush comments, "Despite lowering our box office projections and 3D mix assumptions for 2012, we believe there could be upside to our numbers and suspect that the general perception of declining box office is overdone. In our corresponding Movies and Entertainment industry note, we discuss industry growth over the long term and where we believe the industry is headed in 2012. In short, we believe that while 2011 was disappointing in relation to 2009 – 2010, it was in line with long term growth rates the industry has enjoyed since the days of E.T. We suspect that growth may continue at a rate faster than what we have modeled for 2012."
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 $11.76 yesterday.
To go inline with it's new outlook, the firm has lowered its Q4 and FY11 EPS estimates from $0.06 and $0.29 to ($0.02) and $0.21. Sales for Q4 and FY11 are estimated to total $615 million and $2.68 billion.
Wedbush also cut its FY12 EPS and sales estimates from $0.72 and $2.93 billion to $0.52 and $2.76 billion.
An analyst at Wedbush comments, "Despite lowering our box office projections and 3D mix assumptions for 2012, we believe there could be upside to our numbers and suspect that the general perception of declining box office is overdone. In our corresponding Movies and Entertainment industry note, we discuss industry growth over the long term and where we believe the industry is headed in 2012. In short, we believe that while 2011 was disappointing in relation to 2009 – 2010, it was in line with long term growth rates the industry has enjoyed since the days of E.T. We suspect that growth may continue at a rate faster than what we have modeled for 2012."
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 $11.76 yesterday.
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