Back to top

Analyst Blog

We expect Lions Gate Entertainment Corp. (LGF - Analyst Report), producer and distributor of motion pictures for theatrical and straight-to-video release, to beat expectations when it reports fourth-quarter fiscal 2014 results on May 29, 2014. In the last quarter, it posted a positive surprise of 15.7%.

Why a Likely Positive Surprise?

Our proven model shows that Lions Gate is likely to beat earnings because it has the right combination of two key components.  

Positive Zacks ESP: Lions Gate currently has an Earnings ESP of +2.56%. This is because the Most Accurate estimate stands at 40 cents, while the Zacks Consensus Estimate is pegged at 39 cents.

Zacks Rank #3 (Hold): Note that stocks with Zacks Ranks of #1, 2 and 3 have a significantly higher chance of beating earnings estimates. Stocks with Zacks Rank #4 and 5 (Sell-rated stocks) should never be considered going into an earnings announcement.

The combination of Lions Gate’ Zacks Rank #3 and +2.56% ESP makes us very confident regarding a positive earnings beat on May 29.

What is Driving the Better-than-Expected Earnings?

With a strong track record of producing small and mid-budget specialty films, 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 of accessing films over the Internet, Lions Gate has purchased interests in alternative distribution channels.

The company, in the last four quarters, has outperformed the Zacks Consensus Estimate by an average of 119.7%.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements:

Sanderson Farms, Inc. (SAFM - Snapshot Report) has an Earnings ESP of +2.44% and a Zacks Rank #1 (Strong Buy).

HD Supply Holdings, Inc. (HDS - Snapshot Report) has an Earnings ESP of +11.77% and a Zacks Rank #3 (Hold).

Cabela's Incorporated (CAB - Analyst Report) has an Earnings ESP of +5.88% and a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%
AROTECH COR… ARTX 3.78 +5.59%