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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