Lions Gate Entertainment Goes Red
Lions Gate Entertainment (NYS: LGF) reported earnings on May 30. Here are the numbers you need to know.
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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At the time this article was published 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 ofMotley 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.
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