Lions Gate Entertainment
The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Lions Gate Entertainment beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins grew across the board.
Lions Gate Entertainment reported revenue of $707.0 million. The nine analysts polled by S&P Capital IQ expected sales of $621.8 million on the same basis. GAAP reported sales were 97% higher than the prior-year quarter's $358.1 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 $0.53. The nine earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. GAAP EPS were $0.53 for Q2 against -$0.18 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 54.3%, 1,190 basis points better than the prior-year quarter. Operating margin was 14.3%, 1,990 basis points better than the prior-year quarter. Net margin was 10.7%, 1,760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $705.8 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $0.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 339 members out of 393 rating the stock outperform, and 54 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Lions Gate Entertainment a green thumbs-up, and 13 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 $18.22.
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