Miller anticipates that the movie industry will see strong sales in the summer of 2011, on titles such as DreamWorks' ( DWA) Kung Fu Panda, Viacom's ( VIA) Transformers 3, Disney's ( DIS) Cars 2, Time Warner's ( TWX) The Hangover 2 and the final installment of the Harry Potter movie franchise. Miller says Regal is the "No. 1 market share player domestically," as the company has "tremendous supplier power over the studio system with 6,723 screens." He predicts that the company will report total revenue of $3.01 billion in 2011, up from an estimated $2.83 billion in 2010. His earnings estimate for 2011 is 79 cents a share, up from his estimated 27 cents per share in 2010. Cinemark shares are rising almost 2% after analyst David Gober of Morgan Stanley raised his rating on the stock to equal weight from underweight due to the company's expansion in Latin America. "While we remain cautious on U.S. theatrical attendance trends, Cinemark's growth in Latin America continues to surprise to the upside with 15% to 20% organic revenue growth over the past few years," Gober said in a Jan. 18 research note.
On Jan. 4, analyst Matthew Coppola of Williams Capital Research initiated coverage of Cinemark with an outperform recommendation and a 12-month target price of $21 based on his 2011 earnings estimate of $1.47 a share. Coppola expects Cinemark to see "explosive international growth" after it introduced the multiplex theater to Latin America. Cinemark, which is the second largest exhibition operator in the world, currently operates theaters in 13 of the 15 major metropolitan areas in Latin America. Its international theaters have seen a growth rate of 13.6% over the past 3 years. In 2010 the company built 2 theaters domestically and 5 theaters internationally, and it expects to add 17 new theaters with 170 screens by the end of 2011. Regal shares are up more than 1.7% today to nearly $12.95 while Cinemark shares are rising almost 2% to around $18.15. -- Written by Theresa McCabe in Boston. >To contact the writer of this article, click here: Theresa McCabe. >To follow the writer on Twitter, go to @TheresaMcCabe. >To submit a news tip, send an email to: firstname.lastname@example.org.