NEW YORK (TheStreet) -- Digital movie theater network National CineMedia (NCMI) was falling 11.51% to $15.92 on Friday afternoon after the company issued guidance that came up short of analysts' expectations.
For the first quarter of the fiscal year 2014, the company expects revenue of $67 million to $72 million, which was less than analysts' estimates of $79.5 million. For the full year, National CineMedia expects revenue of $430 million to $440 million, while analysts anticipate $462.93 million.
The company did beat expectations on adjusted earnings for the fourth quarter, which totaled $12.7 million, or 21 cents per share. Analysts polled by Thomson Reuters expected 16 cents per share for the quarter. Profit was $19 million, or 32 cents per share, up from a loss of $500,000, or one cent per share, in the same period one year earlier.
Revenue increased 5.9% year over year to $122.7 million from $115.9 million. Analysts expected revenue of $117.58 million.
Stifel Nicolaus also downgraded National CineMedia to "hold" from "buy."
TheStreet Ratings team rates NATIONAL CINEMEDIA INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL CINEMEDIA INC (NCMI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."