Lions Gate Entertainment Corp. Earnings Cheat Sheet: Swing Up, Topping Expectations

Lions Gate Entertainment Corp. (NYSE:LGF) climbed to a profit in the first quarter and beat Wall Street’s expectations in the process. Lions Gate Entertainment Corp. 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 First Quarter

Results: Swung to a profit of $12.2 million (9 cents per diluted share) in the quarter. Lions Gate Entertainment Corp. had a net loss of $64.1 million or a loss 54 cents per share in the year earlier quarter.

Revenue: Fell 20% to $261.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LGF beat the mean analyst estimate of a loss of 6 cents per share. It fell short of the average revenue estimate of $319.9 million.

Quoting Management: “Our strong performance in the quarter reflected significant contributions from our television business and our share of the EPIX channel as well as decreased costs in several areas,” said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. “Our rapid and accelerating transition from traditional to new digital businesses, both domestically and internationally, is helping to drive our progress and positioning us for future growth, and we’re very excited about our upcoming slates that highlight our momentum in building new film and TV franchises as well as extending our existing brands.”

Key Stats:

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 26 cents versus a mean estimate of net income of 17 cents per share.

Revenue has fallen in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 12.5% to $376.9 million from the year earlier quarter.

The company’s gross margin shrank by 5.1 percentage points. Revenue fell 20% while cost of sales fell 11.6% to $139.4 million from a year earlier.

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) and Sony Corporation (NYSE:SNE).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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