Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Earnings could beat expectations if current revenue growth trend is sustained
Thursday 17 Nov 2016 Author: Daniel Coatsworth

A strong trading update on 15 November would suggest Cineworld (CINE) could beat market expectations if it can deliver a good performance over the next few months.

N+1 Singer says Cineworld could beat its pre-tax profit forecast by 12.5% if it can sustain the 14.6% revenue growth seen in the 45 weeks to 10 November for the rest of the year.

Market sentiment had been mixed towards the company earlier this year as investors feared it couldn’t match or beat the excellent results from 2015 as the film slate looked weaker. That now looks too pessimistic.

Last year’s results were boosted by very popular films in the Star Wars, Jurassic Park and James Bond franchises. Recent films enjoying good box office takings include Secret Life of Pets and The BFG. The next few months sees another Star Wars film and a new one in the Harry Potter franchise.

We are buyers at 559.62p. (DC)

‹ Previous2016-11-17Next ›