Lions Gate Entertainment
The 10-second takeaway
For the quarter ended March 31 (Q4), Lions Gate Entertainment beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded. GAAP earnings per share increased.
Margins increased across the board.
Lions Gate Entertainment reported revenue of $785.7 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $747.8 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $645.2 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 $1.10. The nine earnings estimates compiled by S&P Capital IQ forecast $0.41 per share. Non-GAAP EPS were $1.10 for Q4 versus -$0.17 per share for the prior-year quarter. GAAP EPS were $1.13 for Q4 compared to -$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 46.6%, 250 basis points better than the prior-year quarter. Operating margin was 12.4%, much better than the prior-year quarter. Net margin was 20.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $525.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $2.72 billion. The average EPS estimate is $1.12.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 357 members out of 414 rating the stock outperform, and 57 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 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 $23.30.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.