Amc Networks Intrinsic Value Calculation – AMC NETWORKS Reports Strong Second Quarter Earnings for FY2023
August 13, 2023
☀️Earnings Overview
On August 4, 2023, AMC ($NASDAQ:AMCX) Networks reported its earnings results for the second quarter of FY2023, ending June 30, 2023. Total revenue for the said quarter was USD 678.6 million, an 8.0% year-over-year decrease. Net income was USD 70.2 million, a 15.8% decrease compared to the same period in the previous year.
Price History
The stock opened at $13.3 and closed at $13.9, significantly higher than its previous closing price of 12.3. This remarkable increase in value was mainly due to the company’s impressive financial performance in the quarter. This was attributed to higher subscription revenues as well as higher ad revenues from its portfolio of cable networks. The company’s success also reflects the strong performance of its subsidiaries, which have increased their presence in the global market.
Overall, AMC Networks reported a strong performance in the second quarter of FY2023, which drove its share price higher. This upward trend is expected to continue in the upcoming quarters, as the company continues to expand its reach and maintain a strong financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amc Networks. More…
| Total Revenues | Net Income | Net Margin |
| 3.04k | -6.17 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amc Networks. More…
| Operations | Investing | Financing |
| 189.71 | -42.44 | -85.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amc Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.47k | 4.19k | 23.16 |
Key Ratios Snapshot
Some of the financial key ratios for Amc Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.8% | -6.9% | 2.5% |
| FCF Margin | ROE | ROA |
| 4.8% | 4.9% | 0.9% |
Analysis – Amc Networks Intrinsic Value Calculation
At GoodWhale, we ran an analysis of the fundamentals of AMC NETWORKS. Our proprietary Valuation Line calculated that the fair value of the AMC NETWORKS share is around $40.6. However, right now it is trading at $13.9, which is undervalued by 65.8%. This presents a great opportunity for investors who are looking to invest in a company that is currently undervalued by the market. We believe this is the right time to take advantage of this opportunity and buy shares of AMC NETWORKS. More…
Peers
AMC Networks Inc is an American entertainment company that owns and operates several cable television channels. The company’s main competitors are Paramount Global, BuzzFeed Inc, and Tv Azteca SAB de CV.
– Paramount Global ($NASDAQ:PARA)
Paramount Global has a market cap of 10.21B as of 2022, a Return on Equity of 12.85%. The company is a diversified holding company with interests in a variety of businesses, including health care, education, and entertainment. Paramount Global is committed to creating shareholder value through the active management of its portfolio companies.
– BuzzFeed Inc ($NASDAQ:BZFD)
BuzzFeed, Inc. is an American internet media and news company based in New York City. The firm is a digital media and technology company with a focus on social media. BuzzFeed was founded in 2006 by Jonah Peretti and John S. Johnson III. The company has raised $496.3 million in venture funding to date.
– Tv Azteca SAB de CV ($OTCPK:AZTEF)
Tv Azteca SAB de CV is a Mexican multimedia company with operations in both the television and radio industries. The company’s market cap as of 2022 is 223.95M, and its Return on Equity is 91.59%. Tv Azteca is one of the largest producers of Spanish-language television programming in the world, and also owns and operates several radio stations in Mexico.
Summary
AMC Networks reported a decline in total revenue of 8.0% and net income of 15.8% for the second quarter of FY2023, ending June 30, 2023, compared to the same period in the prior year. Despite this, the stock price moved up the same day. This suggests that investors may be confident in the company’s long-term prospects. Analysts have noted that AMC Networks’ portfolio of television networks, including IFC, SundanceTV, and BBC America, is a key source of growth.
The company has also managed to reduce costs and improve operating efficiency, which has been reflected in better-than-expected financial results. Going forward, investors should continue to focus on the company’s ability to generate revenue from its content and maintain cost discipline in order to realize its long-term potential.
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