Lions Gate Entertainment
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Lions Gate Entertainment beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Margins increased across the board.
Lions Gate Entertainment chalked up revenue of $743.6 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $719.5 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $323.0 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 $0.27. The nine earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS were $0.27 for Q3 versus -$0.01 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 45.9%, 840 basis points better than the prior-year quarter. Operating margin was 11.1%, 670 basis points better than the prior-year quarter. Net margin was 5.1%, 560 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $701.6 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.60 billion. The average EPS estimate is $0.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 336 members out of 389 rating the stock outperform, and 53 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 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 $19.10.
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