AMC shares touch an all-time low on Wednesday, as the company warns on second-quarter earnings

Shares of AMC Entertainment Holdings Inc (AMC) plummeted sharply on Wednesday after the media company said it expected a considerable loss during the second quarter. At the same time, cost reduction and revenue-improving efforts are to be initiated. AMC also noted that challenges might continue into the third quarter.

Shares of AMC Entertainment Holdings closed lower for the fourth time in the past five trading sessions on Wednesday. It has also been the sharpest daily loss in more than two years. The stock went down 26.92% ($5.60) to $15.20, after touching an intraday low at $15.15 and also the lowest price level ever registered. In the week ended on July 30th the shares of the media conglomerate added 0.74% to their market value compared to a week ago, which marked the first gain in the past six weeks, but yet, the smallest one since the week ended on June 4th. The stock has retreated 25.49% so far during the current month, following another 10.33% slump in July. The latter has been the fourth drop in the past six months. For the entire past year, the shares of the NYSE-listed company gained 40.21%.

AMC now projects a second-quarter loss of $1.34 to $1.36 per share, or a far larger figure than what analysts, on average, had anticipated (a loss of $0.01 per share). The company also revised down its full-year 2017 earnings forecast to a loss of $0.97 to $1.17 per share. In comparison, the median analyst estimate had pointed to net earnings of $0.60 per share.

Meanwhile, AMC now expects its second-quarter revenue to be within the range between $1.200 billion and $1.204 billion, or below market consensus ($1.249 billion). Full-year 2017 revenue is expected to fall within the $5.10-$5.23 billion range, or again below the median analyst forecast ($5.27 billion).

The downward earnings forecast revisions came as a result of challenging market environment in North America. On the other hand, solid growth is expected in Europe.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding AMC’s stock price, have a median target of $35.00, with a high estimate of $49.50 and a low estimate of $17.00. The median estimate is a 130.26% surge compared to the closing price of $15.20 on August 2nd.

The same media also reported that 11 out of 17 surveyed investment analysts had rated AMC’s stock as “Buy”, while 4 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the AMC stock are presented as follows:

R1 – $15.28
R2 – $15.37
R3 (Range Resistance – Sell) – $15.45
R4 (Long Breakout) – $15.70
R5 (Breakout Target 1) – $15.98
R6 (Breakout Target 2) – $16.10

S1 – $15.12
S2 – $15.04
S3 (Range Support – Buy) – $14.95
S4 (Short Breakout) – $14.71
S5 (Breakout Target 1) – $14.42
S6 (Breakout Target 2) – $14.30

By using the traditional method of calculation, the weekly levels of importance for AMC Entertainment Holdings Inc (AMC) are presented as follows:

Central Pivot Point – $20.65
R1 – $21.05
R2 – $21.60
R3 – $22.00
R4 – $22.40

S1 – $20.10
S2 – $19.70
S3 – $19.15
S4 – $18.60