Cinema group Cineworld (CINE) could surprise investors by reporting better-than-expected earnings growth in its next trading statement after Star Wars: The Force Awakens smashed box office records.

In the UK the hotly-anticipated film took £9.6 million in its first 24 hours, well ahead of the recent James Bond film, Spectre, which took £6.3 million on its opening day in October.

Despite the hype surrounding the film Cineworld’s share price has barely moved in the past couple of months. The boost in ticket sales for Star Wars’ opening weekend has already been priced in.

We think Cineworld’s numbers could still beat expectations as there’s a strong possibility of fans seeing the film more than once over Christmas. This could boost earnings and revive the share price which has been weak following suggestions next year’s
trading will face tough comparisons. The film line-up for 2016 lacks the blockbusters we saw this year.

Cineworld’s long-term growth is expected to come from its Eastern European expansion, in particular Romania where it plans to open four to five new cinemas every year. It currently operates 21 multiplexes in Romania and has a target of 40. The cost of opening new sites is around half the price of the UK.

Don’t be tempted to sell yet, as an earnings surprise could be just around the corner.