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Lions Gate (LGF.A) Expands in Faith-Based Genre With New Deal
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Lions Gate Entertainment Corporation (LGF.A - Free Report) recently signed a deal with the Erwin brothers, Andrew Erwin and Jon Erwin, and producing partner Kevin Downes to strengthen its position in the faith-based movie community.
The “multi-platform film and television first-look deal” provides the company with prioritized distribution rights of the films that will be produced by the team. Television programs and feature films will be produced and directed by the trio under the banner called Kingdom.
Lions Gate has already got a taste of success in the faith-based genre with titles like The Shack and I Can Only Imagine, and double Oscar winner Hacksaw Ridge. Of these, deal participants have already worked together for I Can Only Imagine. Lions Gate released it along with sister concern Roadside Attractions.
Given the success of the faith-based genre, this new collaboration is expected to be further accretive to the Lions Gate’s financials going ahead.
How is Lions Gate Poised?
Lions Gate has been gaining from its focus on profitable areas and strategic buyouts like that of Starz. These are helping the company to emerge as a major player in the TV space and regain lost ground in streaming network.
Recently, the company reported first-quarter fiscal 2019 adjusted earnings of 18 cents per share that beat the Zacks Consensus Estimate by 3 cents but plunged 64% from the year-ago quarter. Revenues declined 7.2% year over year to $932.7 million.
Lions Gate is restructuring its film slate business, which is likely to put pressure on fiscal 2019 results. The company has repositioned its film business and increased spending on Starz programming. As a result, it expects fiscal 2019 results to be almost in line with fiscal 2018.
Additionally, motion picture production’s escalating costs related to marketing in recent years may jeopardize margins. Further, the company has lowered its three-year compound annual growth rate (CAGR) guidance ended fiscal 2020 and now expects it to be in the range of mid to high single-digit range.
Furthermore, the motion picture industry is highly competitive with the presence of players like Comcast Corporation (CMCSA - Free Report) , Twenty-First Century Fox, Inc. (FOXA - Free Report) and Viacom Inc. . This remains a headwind for the company.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
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Lions Gate (LGF.A) Expands in Faith-Based Genre With New Deal
Lions Gate Entertainment Corporation (LGF.A - Free Report) recently signed a deal with the Erwin brothers, Andrew Erwin and Jon Erwin, and producing partner Kevin Downes to strengthen its position in the faith-based movie community.
The “multi-platform film and television first-look deal” provides the company with prioritized distribution rights of the films that will be produced by the team. Television programs and feature films will be produced and directed by the trio under the banner called Kingdom.
Lions Gate has already got a taste of success in the faith-based genre with titles like The Shack and I Can Only Imagine, and double Oscar winner Hacksaw Ridge. Of these, deal participants have already worked together for I Can Only Imagine. Lions Gate released it along with sister concern Roadside Attractions.
Given the success of the faith-based genre, this new collaboration is expected to be further accretive to the Lions Gate’s financials going ahead.
How is Lions Gate Poised?
Lions Gate has been gaining from its focus on profitable areas and strategic buyouts like that of Starz. These are helping the company to emerge as a major player in the TV space and regain lost ground in streaming network.
Recently, the company reported first-quarter fiscal 2019 adjusted earnings of 18 cents per share that beat the Zacks Consensus Estimate by 3 cents but plunged 64% from the year-ago quarter. Revenues declined 7.2% year over year to $932.7 million.
Lions Gate Entertainment Corp. Revenue (TTM)
Lions Gate Entertainment Corp. Revenue (TTM) | Lions Gate Entertainment Corp. Quote
Lions Gate is restructuring its film slate business, which is likely to put pressure on fiscal 2019 results. The company has repositioned its film business and increased spending on Starz programming. As a result, it expects fiscal 2019 results to be almost in line with fiscal 2018.
Additionally, motion picture production’s escalating costs related to marketing in recent years may jeopardize margins. Further, the company has lowered its three-year compound annual growth rate (CAGR) guidance ended fiscal 2020 and now expects it to be in the range of mid to high single-digit range.
Furthermore, the motion picture industry is highly competitive with the presence of players like Comcast Corporation (CMCSA - Free Report) , Twenty-First Century Fox, Inc. (FOXA - Free Report) and Viacom Inc. . This remains a headwind for the company.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>