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Lionsgate (LGF.A) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
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Lionsgate reported adjusted earnings of 9 cents per share for the first quarter of fiscal 2025, which beat the Zacks Consensus Estimate of 3 cents. The company had reported adjusted earnings of 27 cents in the year-ago quarter.
Revenues decreased 8.1% year over year to $834.7 million but beat the consensus mark by 0.67%.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Motion Picture (41.6% of revenues) revenues decreased 14.6% year over year to $347.3 million. The segment generated a profit of $86.1 million, up 24.4% year over year. The figure beat the Zacks Consensus Estimate by 2.86%.
Television Production (28.9% of revenues) revenues increased 10.3% year over year to $241.1 million. Segmental profit was $10.7 million, down 53.3% year over year. The figure missed the Zacks Consensus Estimate by 14.65%.
The Media Networks segment (41.9% of revenues) reported revenues of $350.1 million, which decreased 8.1% year over year. Segmental profit surged 80.3% to $57.5 million. The figure missed the Zacks Consensus Estimate by 3.56%.
Starz Networks’ revenues increased 1.1% year over year to $345.3 million. The figure missed the Zacks Consensus Estimate by 0.76%.
Other revenues in the quarter fell 87.8% year over year to $4.8 million.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 27.82 million, primarily due to linear and over-the-top (OTT) pressures domestically. The figure beat the Zacks Consensus Estimate by 2.62%.
Total OTT subscribers increased 10.8% year over year to 19.12 million.
Operating Details
Lionsgate’s adjusted OIBDA increased 21.9% year over year to $104.5 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, contracted 150 basis points (bps) to 51.4%.
Distribution and marketing expenses, as a percentage of revenues, contracted 310 bps to 23.8%.
Moreover, general & administrative expenses, as a percentage of revenues, expanded 70 bps year over year to 14.3%.
The company reported an operating income of $18.8 million in the reported quarter, up 211.9% from the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Lionsgate had cash and cash equivalents of $192.5 million compared with $314 million as of Mar 31, 2024.
Net cash flow provided by operating activities was negative $158.9 million at the end of the fiscal first quarter against a cash flow of $4.6 million used at the end of the previous quarter.
Adjusted free cash flow was negative $88.9 million against a free cash flow of $2.7 million in the previous quarter.
Zacks Rank & Other Stocks to Consider
Lionsgate currently carries a Zacks Rank #2 (Buy).
GameSquare Holdings is scheduled to report second-quarter 2024 results on Aug 14. The Zacks Consensus Estimate for GAME’s loss per share has narrowed by 2 cents to 9 cents over the past 30 days.
H&R Block is set to report second-quarter 2024 results on Aug 15. The Zacks Consensus Estimate for HRB’s earnings is pegged at $1.71 per share, which has remained unchanged over the past 30 days.
Madison Square Garden Entertainment is slated to report second-quarter 2024 results on Aug 16. The Zacks Consensus Estimate for MSGE’s loss per share is pegged at 57 cents, which has remained unchanged over the past 30 days.
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Lionsgate (LGF.A) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Lionsgate reported adjusted earnings of 9 cents per share for the first quarter of fiscal 2025, which beat the Zacks Consensus Estimate of 3 cents. The company had reported adjusted earnings of 27 cents in the year-ago quarter.
Revenues decreased 8.1% year over year to $834.7 million but beat the consensus mark by 0.67%.
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 (41.6% of revenues) revenues decreased 14.6% year over year to $347.3 million. The segment generated a profit of $86.1 million, up 24.4% year over year. The figure beat the Zacks Consensus Estimate by 2.86%.
Television Production (28.9% of revenues) revenues increased 10.3% year over year to $241.1 million. Segmental profit was $10.7 million, down 53.3% year over year. The figure missed the Zacks Consensus Estimate by 14.65%.
The Media Networks segment (41.9% of revenues) reported revenues of $350.1 million, which decreased 8.1% year over year. Segmental profit surged 80.3% to $57.5 million. The figure missed the Zacks Consensus Estimate by 3.56%.
Starz Networks’ revenues increased 1.1% year over year to $345.3 million. The figure missed the Zacks Consensus Estimate by 0.76%.
Other revenues in the quarter fell 87.8% year over year to $4.8 million.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 27.82 million, primarily due to linear and over-the-top (OTT) pressures domestically. The figure beat the Zacks Consensus Estimate by 2.62%.
Total OTT subscribers increased 10.8% year over year to 19.12 million.
Operating Details
Lionsgate’s adjusted OIBDA increased 21.9% year over year to $104.5 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, contracted 150 basis points (bps) to 51.4%.
Distribution and marketing expenses, as a percentage of revenues, contracted 310 bps to 23.8%.
Moreover, general & administrative expenses, as a percentage of revenues, expanded 70 bps year over year to 14.3%.
The company reported an operating income of $18.8 million in the reported quarter, up 211.9% from the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Lionsgate had cash and cash equivalents of $192.5 million compared with $314 million as of Mar 31, 2024.
Net cash flow provided by operating activities was negative $158.9 million at the end of the fiscal first quarter against a cash flow of $4.6 million used at the end of the previous quarter.
Adjusted free cash flow was negative $88.9 million against a free cash flow of $2.7 million in the previous quarter.
Zacks Rank & Other Stocks to Consider
Lionsgate currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks to consider in the Consumer Discretionary sector are GameSquare Holdings, Inc. (GAME - Free Report) , H&R Block (HRB - Free Report) and Madison Square Garden Entertainment Corp. (MSGE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GameSquare Holdings is scheduled to report second-quarter 2024 results on Aug 14. The Zacks Consensus Estimate for GAME’s loss per share has narrowed by 2 cents to 9 cents over the past 30 days.
H&R Block is set to report second-quarter 2024 results on Aug 15. The Zacks Consensus Estimate for HRB’s earnings is pegged at $1.71 per share, which has remained unchanged over the past 30 days.
Madison Square Garden Entertainment is slated to report second-quarter 2024 results on Aug 16. The Zacks Consensus Estimate for MSGE’s loss per share is pegged at 57 cents, which has remained unchanged over the past 30 days.