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Lionsgate (LGF.A) Q4 Earnings Top Estimates, Revenues Fall Y/Y
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Lionsgate (LGF.A - Free Report) reported breakeven earnings for the fourth quarter of fiscal 2021 in contrast to the Zacks Consensus Estimate of a loss of 5 cents per share. However, the figure declined from 25 cents per share reported in the year-ago period.
Moreover, revenues decreased 7.2% year over year to $876.4 million and beat the consensus mark by 10.6%.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Motion Picture (33.4% of revenues) revenues decreased 25.7% year over year to $292.4 million, primarily attributed to theater closings related to the coronavirus pandemic.
Markedly, film and television library revenues, on a trailing 12-month basis, grew to $780 million in the reported quarter.
Moreover, the Motion Picture segment generated a profit of $61.6 million, down 39.1% year over year.
Television Production (24% of revenues) revenues decreased 18.4% year over year to $210.7 million. Segment profit was $9.1 million, which declined 57.7% year over year.
Meanwhile, the Media Networks segment (45.8% of revenues), formed after the acquisition of Starz, reported revenues of $401 million, up 12% year over year, driven by increased revenues from STARZPLAY International. Segment profit increased 68.6% to $43 million.
Starz Networks revenues increased 8.1% year over year to $365 million. STARZPLAY International revenues in the quarter surged 153.8% year over year to $23.6 million. Streaming services revenues increased 12.7% year over year to $12.4 million in the reported quarter.
Media Networks global subscribers, including STARZPLAY Arabia, a non-consolidated equity method investee, increased to 29.5 million. Global streaming subscribers increased 69% year over year to 16.7 million, exceeding the company’s guidance of 13 to 15 million subscribers.
Operating Details
Lionsgate’s adjusted OIBDA declined 38.5% year over year to $77.4 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, declined 530 basis points (bps) on a year-over-year basis to 54.4%.
Meanwhile, distribution and marketing expenses, as a percentage of revenues, expanded 380 bps on a year-over-year basis to 26.8%.
Moreover, general & administrative expenses, as a percentage of revenues, increased 440 bps year over year to 16.4%.
Operating income was $14.3 million in the reported quarter against loss of $12 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2021, Lionsgate had cash and cash equivalents of $528.7 million compared with $551.5 million as of Dec 31, 2020.
Net cash outflow from operating activities was $159.8 million at the end of the fiscal fourth quarter compared with $44.2 million at the end of the previous quarter and positive net cash flow of $180.3 million in the year-ago quarter.
Adjusted free cash flow was $3.1 million compared with free cash flow of $110.7 million in the previous quarter and $175.2 million in the year-ago quarter.
Zacks Rank & Stocks to Consider
Currently, Lionsgate carries a Zacks Rank #2 (Buy).
Long-term earnings growth rate for Gray Television, WW International and YETI Holdings is currently pegged at 10%, 15% and 16.9%, respectively.
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Lionsgate (LGF.A) Q4 Earnings Top Estimates, Revenues Fall Y/Y
Lionsgate (LGF.A - Free Report) reported breakeven earnings for the fourth quarter of fiscal 2021 in contrast to the Zacks Consensus Estimate of a loss of 5 cents per share. However, the figure declined from 25 cents per share reported in the year-ago period.
Moreover, revenues decreased 7.2% year over year to $876.4 million and beat the consensus mark by 10.6%.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote
Segment Details
Motion Picture (33.4% of revenues) revenues decreased 25.7% year over year to $292.4 million, primarily attributed to theater closings related to the coronavirus pandemic.
Markedly, film and television library revenues, on a trailing 12-month basis, grew to $780 million in the reported quarter.
Moreover, the Motion Picture segment generated a profit of $61.6 million, down 39.1% year over year.
Television Production (24% of revenues) revenues decreased 18.4% year over year to $210.7 million. Segment profit was $9.1 million, which declined 57.7% year over year.
Meanwhile, the Media Networks segment (45.8% of revenues), formed after the acquisition of Starz, reported revenues of $401 million, up 12% year over year, driven by increased revenues from STARZPLAY International. Segment profit increased 68.6% to $43 million.
Starz Networks revenues increased 8.1% year over year to $365 million. STARZPLAY International revenues in the quarter surged 153.8% year over year to $23.6 million. Streaming services revenues increased 12.7% year over year to $12.4 million in the reported quarter.
Media Networks global subscribers, including STARZPLAY Arabia, a non-consolidated equity method investee, increased to 29.5 million. Global streaming subscribers increased 69% year over year to 16.7 million, exceeding the company’s guidance of 13 to 15 million subscribers.
Operating Details
Lionsgate’s adjusted OIBDA declined 38.5% year over year to $77.4 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, declined 530 basis points (bps) on a year-over-year basis to 54.4%.
Meanwhile, distribution and marketing expenses, as a percentage of revenues, expanded 380 bps on a year-over-year basis to 26.8%.
Moreover, general & administrative expenses, as a percentage of revenues, increased 440 bps year over year to 16.4%.
Operating income was $14.3 million in the reported quarter against loss of $12 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2021, Lionsgate had cash and cash equivalents of $528.7 million compared with $551.5 million as of Dec 31, 2020.
Net cash outflow from operating activities was $159.8 million at the end of the fiscal fourth quarter compared with $44.2 million at the end of the previous quarter and positive net cash flow of $180.3 million in the year-ago quarter.
Adjusted free cash flow was $3.1 million compared with free cash flow of $110.7 million in the previous quarter and $175.2 million in the year-ago quarter.
Zacks Rank & Stocks to Consider
Currently, Lionsgate carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader consumer & discretionary sector include Gray Television, Inc. (GTN - Free Report) , WW International, Inc. (WW - Free Report) and YETI Holdings, Inc. (YETI - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings growth rate for Gray Television, WW International and YETI Holdings is currently pegged at 10%, 15% and 16.9%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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