Lions Gate Entertainment Earnings: Here’s Why Investors are Bidding Up Shares
Lions Gate Entertainment Corp. (NYSE:LGF) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.5%.
Lions Gate Entertainment Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.27 in the quarter versus EPS of $-0.01 in the year-earlier quarter.
Revenue: Rose 130.2% to $743.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Lions Gate Entertainment Corp. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.16. It beat the average revenue estimate of $707.02 million.
Quoting Management: “The quarter reflected not only the impact of our young adult franchises but strong contributions from the rest of our theatrical releases and our home entertainment and international operations,” said Lionsgate Chief Executive Officer Jon Feltheimer. “Our revenue growth compared to the prior year quarter was matched by continued strong EBITDA and free cash flow that will enable us to continue our focus on optimizing our capital structure and deleveraging our balance sheet.”
Key Stats (on next page)…
Revenue increased 5.18% from $706.97 million in the previous quarter. EPS decreased 49.06% from $0.53 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.42. For the current year, the average estimate has moved up from a profit of $0.63 to a profit of $0.81 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)