The Bearish Case for AMC Networks (AMCX)

A key level of support has formed in the chart of AMC Networks (AMCX).  If this support level is breached, a breakdown is expected…

AMC Networks Inc. (AMCX) is engaged in producing programming and movie content. It owns and operates various cable televisions, including flagship AMC, WE tv, BBC America, IFC, and SundanceTV.

AMCX just released its latest financial results this morning, with EPS of $1.32, beating the consensus analyst estimate of $1.08. Earnings were down 43.3% year over year though. Revenue came in at $654 million for the quarter, which was down 9% from the prior year quarter. The company has made progress on its digital initiatives as it expects 5.0 million to 5.5 million paid subscribers by year-end for its portfolio of streaming services.

The form had cash and cash equivalents of $1.1 billion as of the end of the quarter. This was an increase from the prior quarter. Free cash flow was $595 million, which was also an increase from $227 million last year.

Earnings and revenues are expected to be down for the year, but are forecasted to grow 9.7% and 6.3% next year, respectively. AMCX has a very low P/E ratio of 6.14 with a PEG forward ratio of 1.72.

The stock is showing bearishness over the short, mid and long-term, which is reflected in our POWR Ratings, with a “Strong Sell” rating, and a grade of “F” for Trade Grade and Buy and Grade. That may change though as we take a look at the 1-year chart of AMCX below with added notations…

To see chart and continue reading at