Shares of Cinemark Holdings (NYSE: NYSE: CNK ) fell sharply by 16% as the company's fourth-quarter earnings per share (EPS) failed to meet analyst expectations. The reported EPS of $0.33 was $0.03 short of the $0.36 consensus estimate. Despite revenue for the quarter exceeding expectations at $814.3 million compared to the estimated $780.75 million, the miss on the bottom line appeared to weigh heavily on investor sentiment.

The Plano, Texas-based company highlighted its full-year 2024 revenue, which slightly declined by 0.6% to $3,049.5 million compared to $3,066.7 million in the previous year. The annual net income showed improvement, rising to $309.7 million from $188.2 million in FY 2023. However, the fourth-quarter results, particularly the EPS miss, overshadowed these annual gains.

Cinemark's press release emphasized a strong year with a 19.4% Adjusted EBITDA margin and significant cash generation, including $466 million from operating activities and $315 million of free cash flow. The company also reinstated its cash dividend at $0.32 per share annually, signifying confidence in its recovery post-pandemic and its commitment to shareholder value.

The fourth quarter saw Cinemark entertain 51 million moviegoers, contributing to a record-high quarterly revenue of $814 million, marking a 27% increase YoY and a 3% increase compared to the fourth quarter of 2019. Despite these positive metrics, the stock's decline indicates that the market was not satisfied with the company's overall performance, particularly the EPS shortfall.

Cinemark's management remains optimistic about the future of theatrical exhibition, as evidenced by their decision to reinstate the dividend. The company's CEO, Sean Gamble, noted Cinemark's outperformance relative to industry benchmarks and its sustained market share growth.