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Lionsgate Q2 Earnings Miss Estimates, Revenues Decrease Y/Y
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Lionsgate (LGF.A) reported an adjusted loss of 43 cents per share for the second quarter of fiscal 2025, which was wider than the Zacks Consensus Estimate of a loss of 40 cents. The company had reported adjusted earnings of 21 cents in the year-ago quarter.
LGF.A’s earnings beat the Zacks Consensus Estimate in each the trailing four quarters, the average surprise being 284.38%.
Following fiscal second-quarter earnings, LGF.A’s shares fell more than 3% in after-hours trading . Lionsgate shares have declined 26.2% year to date, underperforming the Zacks Consumer Discretionary sector’s return of 7.5%.
Segment Details of LGF.A
Motion Picture (42.9% of revenues) revenues increased 2.8% year over year to $407.1 million. The segment generated a profit of $2.6 million, down 96% year over year. The figure beat the Zacks Consensus Estimate by 113.9%.
Television Production (43.9% of revenues) revenues increased 5.7% year over year to $416.6 million. Segmental profit was $24.4 million, down 61.3% year over year. The figure missed the Zacks Consensus Estimate by 21.27%.
The Media Networks segment (36.5% of revenues) reported revenues of $346.9 million, which decreased 16.7% year over year. Segmental profit dipped 59.1% to $27.2 million. The figure beat the Zacks Consensus Estimate by 81.45%.
Starz Networks’ revenues decreased 0.2% year over year to $343 million. The figure beat the Zacks Consensus Estimate by 0.4%.
Other revenues in the quarter fell 94.6% year over year to $3.9 million.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 25.66 million, due to linear and over-the-top (OTT) pressures domestically. The figure missed the Zacks Consensus Estimate by 2.51%.
Total OTT subscribers increased 10.8% year over year to 17.91 million.
LGF.A’s Operating Details
Lionsgate’s adjusted OIBDA loss was $17.7 million in the reported quarter against the adjusted OIBDA of $104.5 million in the prior quarter.
Direct operating expenses, as a percentage of revenues, expanded 1295 basis points (bps) to 67.81%.
Distribution and marketing expenses, as a percentage of revenues, expanded 272 bps to 24.55%.
General & administrative expenses, as a percentage of revenues, contracted 63 bps year over year to 11.54%.
The company reported an operating loss of $88.6 million in the reported quarter compared with an operating loss of $817.5 million in the year-ago quarter.
Balance Sheet & Cash Flow of LGF.A
As of Sept. 30, 2024, Lionsgate had cash and cash equivalents of $229.6 million compared with $192.5 million as of June 30, 2024.
Net cash flow provided by operating activities was negative $82 million at the end of the fiscal second quarter against a cash flow of $158.9 million used at the end of the previous quarter.
Adjusted free cash flow was negative $132.4 million compared with a negative free cash flow of $88.9 million in the previous quarter.
LGF.A's Zacks Rank & Stocks to Consider
Lionsgate currently carries a Zacks Rank #5 (Strong Sell).
Shares of LGF.A have gained 26.3% year to date compared with the Zacks Consumer Discretionary sector’s growth of 7.4%.
Shares of MSGE have gained 35.5% year to date. The Zacks Consensus Estimate for MSGE’s fiscal 2025 revenues is pegged at $978.29 million, indicating a year-over-year increase of 1.98%. The consensus mark for earnings is pegged at $1.66 per share, which has gained 2 cents in the past 30 days.
Shares of Carnival have gained 27.9% year to date. The Zacks Consensus Estimate for CCL’s 2024 revenues is pegged at $25.19 billion, indicating a year-over-year increase of 16.63%. The consensus mark for earnings is pegged at $1.31 per share, which has increased 2.3% in the past 30 days.
Shares of Flexsteel have gained 217.2% year to date. The Zacks Consensus Estimate for FLXS’s fiscal 2025 revenues is pegged at $433.08 million, indicating a year-over-year increase of 4.92%. The consensus mark for earnings is pegged at $3.25 per share, which has increased 8.3% in the past 30 days.
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Lionsgate Q2 Earnings Miss Estimates, Revenues Decrease Y/Y
Lionsgate (LGF.A) reported an adjusted loss of 43 cents per share for the second quarter of fiscal 2025, which was wider than the Zacks Consensus Estimate of a loss of 40 cents. The company had reported adjusted earnings of 21 cents in the year-ago quarter.
LGF.A’s earnings beat the Zacks Consensus Estimate in each the trailing four quarters, the average surprise being 284.38%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues decreased 6.5% year over year to $948.6 million but beat the consensus mark by 2.12%.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote
Following fiscal second-quarter earnings, LGF.A’s shares fell more than 3% in after-hours trading . Lionsgate shares have declined 26.2% year to date, underperforming the Zacks Consumer Discretionary sector’s return of 7.5%.
Segment Details of LGF.A
Motion Picture (42.9% of revenues) revenues increased 2.8% year over year to $407.1 million. The segment generated a profit of $2.6 million, down 96% year over year. The figure beat the Zacks Consensus Estimate by 113.9%.
Television Production (43.9% of revenues) revenues increased 5.7% year over year to $416.6 million. Segmental profit was $24.4 million, down 61.3% year over year. The figure missed the Zacks Consensus Estimate by 21.27%.
The Media Networks segment (36.5% of revenues) reported revenues of $346.9 million, which decreased 16.7% year over year. Segmental profit dipped 59.1% to $27.2 million. The figure beat the Zacks Consensus Estimate by 81.45%.
Starz Networks’ revenues decreased 0.2% year over year to $343 million. The figure beat the Zacks Consensus Estimate by 0.4%.
Other revenues in the quarter fell 94.6% year over year to $3.9 million.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 25.66 million, due to linear and over-the-top (OTT) pressures domestically. The figure missed the Zacks Consensus Estimate by 2.51%.
Total OTT subscribers increased 10.8% year over year to 17.91 million.
LGF.A’s Operating Details
Lionsgate’s adjusted OIBDA loss was $17.7 million in the reported quarter against the adjusted OIBDA of $104.5 million in the prior quarter.
Direct operating expenses, as a percentage of revenues, expanded 1295 basis points (bps) to 67.81%.
Distribution and marketing expenses, as a percentage of revenues, expanded 272 bps to 24.55%.
General & administrative expenses, as a percentage of revenues, contracted 63 bps year over year to 11.54%.
The company reported an operating loss of $88.6 million in the reported quarter compared with an operating loss of $817.5 million in the year-ago quarter.
Balance Sheet & Cash Flow of LGF.A
As of Sept. 30, 2024, Lionsgate had cash and cash equivalents of $229.6 million compared with $192.5 million as of June 30, 2024.
Net cash flow provided by operating activities was negative $82 million at the end of the fiscal second quarter against a cash flow of $158.9 million used at the end of the previous quarter.
Adjusted free cash flow was negative $132.4 million compared with a negative free cash flow of $88.9 million in the previous quarter.
LGF.A's Zacks Rank & Stocks to Consider
Lionsgate currently carries a Zacks Rank #5 (Strong Sell).
Shares of LGF.A have gained 26.3% year to date compared with the Zacks Consumer Discretionary sector’s growth of 7.4%.
Some better-ranked stocks from the broader sector, which investors can consider, are Madison Square Garden Entertainment Corp. (MSGE - Free Report) , Carnival (CCL - Free Report) and Flexsteel Industries (FLXS - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MSGE have gained 35.5% year to date. The Zacks Consensus Estimate for MSGE’s fiscal 2025 revenues is pegged at $978.29 million, indicating a year-over-year increase of 1.98%. The consensus mark for earnings is pegged at $1.66 per share, which has gained 2 cents in the past 30 days.
Shares of Carnival have gained 27.9% year to date. The Zacks Consensus Estimate for CCL’s 2024 revenues is pegged at $25.19 billion, indicating a year-over-year increase of 16.63%. The consensus mark for earnings is pegged at $1.31 per share, which has increased 2.3% in the past 30 days.
Shares of Flexsteel have gained 217.2% year to date. The Zacks Consensus Estimate for FLXS’s fiscal 2025 revenues is pegged at $433.08 million, indicating a year-over-year increase of 4.92%. The consensus mark for earnings is pegged at $3.25 per share, which has increased 8.3% in the past 30 days.