Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of movie studio Lions Gate Entertainment
So what: After yesterday's close, Lions Gate reported results for its fiscal third quarter, but that release actually pushed shares down in after-hours trading. For the quarter, the company registered a loss of $0.01 per share on total revenue of $323 million. That was a big whiff versus Wall Street's expectation of a per-share profit of $0.09 on $364 million in sales.
Now what: So what turned it all around for Lions Gate's stock? In part, it was due to a few gorgeous vampires. More specifically, investors seem to have gotten fired up on expectations around Summit Entertainment, the studio behind the Twilight series that Lions Gate acquired last month. Twilight has grossed $2.5 billion in worldwide ticket sales. At the same time, hopes are high that the first of the Hunger Games movies -- a series that, like Twilight, is based on a wildly popular teen book series -- will be a big hit when it hits theatres next month.
Want to keep up to date on Lions Gate Entertainment? Add it to your Watchlist.
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.
Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.
More from The Motley Fool
The Starz Buyout Is Paying Off for Lions Gate Entertainment Corp.
Despite a handful of timing-based headwinds, the content studio saw adjusted operating profits rise 66% year over year.
These Are the Biggest Winners When Netflix, Inc. Raises Subscription Prices
Netflix doesn't operate in a vacuum, and its pricing changes can be good news for many other players in the movie industry.
4 Things I Learned From Lions Gate's Earnings Report
The Starz deal is paying off nicely so far, but it's consistent performance both at the box office and in the ratings that long-term investors need to see.