AMC Networks Stock Punished After Shaky Q4 Earnings Report; CEO Kristin Dolan Downplays M&A Scenarios, Says Plan Is To “Stick To Our Knitting” As “Marketplace Sorts Itself Out”
deadline.comShares in AMC Networks dropped sharply in early trading Friday following a shaky fourth-quarter earnings report and a conference call with Wall Street analysts.
The stock initially drifted down by mid-single-digits in pre-market trading after the earnings release, which revealed a 23% drop in domestic ad revenue and a 16% decline in affiliate revenue.
Although it was difficult to draw a direct line between management comments on the call and the stock movement later in the morning, the selloff intensified after the call.
Shares fell 19% in the first hour of the trading day, to their lowest level since last October. Execs were asked on the call to offer their guidance as to when the company’s top-line revenue might stabilize or even return to growth. “We’ve been very clear for the past year and going forward about how we’re managing the business and making it as efficient as possible,” Dolan said. “On the top line, we’re really waiting out what’s going on in the industry.
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