Lions Gate Entertainment
The 10-second takeaway
For the quarter ended March 31 (Q4), Lions Gate Entertainment met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Lions Gate Entertainment tallied revenue of $645.2 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $654.7 million on the same basis. GAAP reported sales were 71% higher than the prior-year quarter's $376.9 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 -$0.17. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS were -$0.17 for Q4 against $0.31 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 44.1%, 890 basis points worse than the prior-year quarter. Operating margin was 0.4%, 1,970 basis points worse than the prior-year quarter. Net margin was -3.5%, 1,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $416.7 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.27 billion. The average EPS estimate is $1.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 342 members out of 394 rating the stock outperform, and 52 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Lions Gate Entertainment a green thumbs-up, and 14 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 $16.94.
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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.