Analyst’s Ratings on Regal Entertainment Group (NYSE:RGC)

Analysts are weighing in on how Regal Entertainment Group (NYSE:RGC), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.6. The stock is rated as buy by 6 analysts, with 3 outperform and 12 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 19.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.36 a share, which would compare with $0.38 in the same quarter last year. They have a high estimate of $0.48 and a low estimate of $0.22. Revenue for the period is expected to total nearly $838.85M from $862.80M the year-ago period.

For the full year, 19.00 Wall Street analysts forecast this company would deliver earnings of 1.07 per share, with a high estimate of $1.21 and a low estimate of $0.87. It had reported earnings per share of $1.08 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $3.16B versus 3.13B in the preceding year.

The analysts project the company to maintain annual growth of around 8.31% percent over the next five years as compared to an average growth rate of 17.23% percent expected for its competitors in the same industry.

Among the 18 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for RGC is $22.98 but some analysts are projecting the price to go as high as $31.00. If the optimistic analysts are correct, that represents a 54 percent upside potential from the recent closing price of $20.12. Some sell-side analysts, particularly the bearish ones, have called for $18.00 price targets on shares of Regal Entertainment Group (NYSE:RGC).

In the last reported results, the company reported earnings of $0.38 per share, while analysts were calling for share earnings of $0.35. It was an earnings surprise of 8.60%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Regal Entertainment Group, through its subsidiaries, operates as a motion picture exhibitor in the United States. It develops, acquires, and operates multi-screen theatres primarily in mid-sized metropolitan markets and suburban growth areas of larger metropolitan markets. The company operates a theatre circuit under the brands of Regal Cinemas, United Artists, Edwards, Great Escape Theatres, and Hollywood Theaters. As of December 31, 2015, it operated 7,361 screens in 572 theatres in 42 states along with Guam, Saipan, American Samoa, and the District of Columbia. Regal Entertainment Group was founded in 2002 and is based in Knoxville, Tennessee.