Lions Gate Entertainment
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Lions Gate Entertainment whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share contracted.
Gross margins shrank, operating margins shrank, net margins grew.
Lions Gate Entertainment reported revenue of $323.0 million. The eight analysts polled by S&P Capital IQ expected a top line of $363.8 million. GAAP sales were 24% lower than the prior-year quarter's $422.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.01. The eight earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS were -$0.01 for Q3 compared to -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.5%, 1,410 basis points worse than the prior-year quarter. Operating margin was 3.6%, 160 basis points worse than the prior-year quarter. Net margin was -0.5%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $489.9 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $0.11.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 271 members out of 315 rating the stock outperform, and 44 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Lions Gate Entertainment a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lions Gate Entertainment is outperform, with an average price target of $8.93.
Over the decades, small-cap stocks, like Lions Gate Entertainment have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Lions Gate Entertainment to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.