Lions Gate Entertainment Corp. Earnings Cheat Sheet: Reversing to a Loss Following Two Consecutive Quarters of Profit

Lions Gate Entertainment Corp.’s (NYSE:LGF) second quarter loss narrowed, beating estimates. Lions Gate Entertainment is engaged in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand, and digitally delivered content.

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Lions Gate Entertainment Corp Earnings Cheat Sheet for the Second Quarter

Results: Loss narrowed to $24.6 million (loss of 18 cents per diluted share) from $29.7 million (loss of 22 cents per share) in the same quarter a year earlier.

Revenue: Fell 21.5% to $358.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LGF beat the mean analyst estimate of a loss of 36 cents per share. It fell short of the average revenue estimate of $421.4 million.

Quoting Management: “Although we were disappointed by the performance of our films in the quarter, we were pleased with the strong and growing contributions of all of our other core businesses,” said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. “We believe that our film performance will improve significantly and become more consistent as we release some of the potential franchise films on our upcoming slate, and our television and digital businesses and EPIX channel partnership will continue their strong and profitable growth trajectory.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 15 cents in the first quarter and by 9 cents in the fourth quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the first quarter, revenue declined 20% to $261.3 million while the figure fell 12.5% in the fourth quarter of the last fiscal year from the year earlier.

The company’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $12.2 million in the first quarter and a profit of $46.1 million in the fourth quarter of the last fiscal year.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the third quarter has reached 10 cents per share, up from 4 cents. For the fiscal year, the average estimate has moved down from a profit of 30 cents a share to a loss of 2 cents over the last sixty days.

Competitors to Watch: DreamWorks Animation SKG, Inc. (NASDAQ:DWA), The Walt Disney Company (NYSE:DIS), Rentrak Corporation (NASDAQ:RENT), Time Warner Inc. (NYSE:TWX), Seven Arts Pictures PLC (NASDAQ:SAPX), CKX Inc. (NASDAQ:CKXE), News Corporation (NASDAQ:NWSA), Apple (NASDAQ:AAPL), and Sony Corporation (NYSE:SNE).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)