Zacks’ analyst wrote, “With a strong track record of producing small and mid-budget specialty films, we think, Lions Gate is well positioned to increase market share, maximize return and build a diversified portfolio, through strategic acquisitions and alliances. To participate in the growing trend among consumers accessing films over the Internet, Lions Gate has purchased interests in alternative distribution channels. The company recently posted better-than-expected fourth-quarter 2012 results. The adjusted earnings of $0.21 per share beat the Zacks Consensus Estimate of $0.18. Including one-time items, the company posted a loss of $0.17 per share. Total revenue surged 71% to $645.2 million, and beat the Zacks Consensus Estimate of $616 million. However, impeding the company’s growth is the escalating cost of motion picture production, which may jeopardize its margins. Moreover, intense competition from major studios may also result in lower box office receipts.”
Shares of Lions Gate traded down 5.61% during mid-day trading on Monday, hitting $11.95. Lions Gate has a one year low of $5.88 and a one year high of $16.19. The company’s market cap is $1.589 billion.
Lions Gate last issued its quarterly earnings data on Wednesday, May 30th. The company reported ($0.17) earnings per share for the quarter, missing the analysts’ consensus estimate of $0.27 by $0.44. Lions Gate’s revenue was up 71.1% compared to the same quarter last year. On average, analysts predict that Lions Gate will post $0.20 earnings per share next quarter.
LGF has been the subject of a number of other recent research reports. Analysts at RBC Capital (NYSE: RY) upgraded shares of Lions Gate from a “sector perform” rating to an “outperform” rating in a research note to investors on Friday. Separately, analysts at Caris & Co. upgraded shares of Lions Gate from an “average” rating to an “above average” rating in a research note to investors on Monday, April 23rd. Finally, analysts at Caris & Co. upgraded shares of Lions Gate from an “above average” rating to an “average” rating in a research note to investors on Monday, April 23rd. They noted that the move was a valuation call.
Lions Gate Entertainment Corp. is a global entertainment company with a diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution and new channel platforms.