Lions Gate Entertainment (LGF.A Quick QuoteLGF.A - Free Report) shares soared 5.8% in the last trading session to close at $20.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.7% gain over the past four weeks.

The upswing in share price came after the company reported impressive 69% year-over-year increase in global streaming subscribers to 16.7 million, exceeding the Company's previous forecast of 13 to 15 million subscribers, in fourth-quarter 2021 results.

Media Networks global subscribers increased to 29.5 million including STARZPLAY Arabia, a non-consolidated equity method investee, and excluding Pantaya (interest sold in March 2021), fueled by robust domestic and international streaming subscriber growth.

Price and Consensus

This motion picture producer and distributor is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -71.8%. Revenues are expected to be $940.28 million, up 15.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Lions Gate, the consensus EPS estimate for the quarter has been revised 133.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LGF.A going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>