AMC anticipates second-quarter earnings to be weak, with both revenue and profit declining.

• On Wednesday, AMC Entertainment informed investors of potential decreases in crucial measurements during the second quarter, resulting in a decline in share prices.
• The slowdown in theatrical releases during the last year's actors and writers strike was attributed to the company, resulting in "weakness" in the quarter ended June 30.
• During the period, AMC experienced a net loss and a revenue decline of over 23%, compared to a profit in the previous year.

On Wednesday, investors were cautioned about potential declines in crucial metrics during the second quarter, resulting in a more than 5% drop in share prices.

The slowdown in theatrical releases during the last year's actors and writers strike was attributed to the company, resulting in "weakness" in the quarter ended June 30.

AMC's preliminary results showed a 23% decrease in revenue to $1.03 billion and an expected net loss of $32.8 million compared to a profit of $8.6 million in the second quarter of 2023. Full results will be posted on August 2.

"According to Adam Aron, chairman and CEO of AMC Entertainment, the prolonged actors and writers strikes of 2023 led to a significant reduction in the number of movies being released theatrically in the early months of 2024. This, in turn, contributed to the weakness in AMC's preliminary Q2 2024 results compared to the same quarter of the previous year."

The theatrical industry has experienced a surge in popularity after a decline due to the pandemic, with movies like "Inside Out 2," "Despicable Me 4," "Twisters," and "Longlegs" attracting large audiences.

"If focusing solely on the full quarter, a lay observer may overlook the positive developments that occurred during the second quarter," Arons stated. "The trend of moviegoing in theaters is showing a positive upward movement."

The highly anticipated release of Disney and Marvel's "Deadpool and Wolverine" is expected to have the highest opening for an R-rated film in history and the highest opening of 2024.

In September, "Beetlejuice Beetlejuice" will be released, followed by "Joker: Folie a Deux" and "Venom: The Last Dance" in October. November will bring "Gladiator II," "Moana 2," and "Wicked," while December will feature "Kraven the Hunter," "Sonic the Hedgehog 3," and "Mufasa: The Lion King."

"AMC expects industry-wide movie revenues for the second half of 2024 and beyond to continue showing increasing strength, which will lead to higher adjusted EBITDA for the company. Such improvements in revenues, earnings, and adjusted EBITDA are AMC's current expectations for the future."

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.