We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lions Gate (LGF) Misses on Q4 Earnings, Tops Sales Estimate
Read MoreHide Full Article
Lions Gate Entertainment Corp. (LGF.A - Free Report) reported fourth-quarter fiscal 2017 quarterly numbers, wherein the company posted earnings per share of 28 cents, missing the Zacks Consensus Estimate by a penny.
On the revenue front, Lions Gate witnessed a sharp increase of 58.8% year over year to $1,256.1 million and also surpassed the Zacks Consensus estimate of $1,206 million. This can primarily be attributed to a surge in Motion pictures revenues and Starz acquisition. However, on a pro forma basis revenues increased 3%.
The company’s adjusted EBITDA came in at $162.7 million, in comparison with $0.7 million reported in the prior-year quarter. On a pro forma basis adjusted EBITDA increased 27% year over year. The company’s filmed entertainment backlog was nearly $1.4 billion at the end of the fiscal fourth quarter.
Not much movement was witnessed in after-hours trading session yesterday. Moreover, the stock has declined 44.6% in the past six months, underperforming the Zacks categorized Movie/TV Production/Distribution industry’s decrease of 3.4%.
Segmental Performance (On Pro forma basis)
Motion Pictures’ revenues increased 7.3% year over year to $654 million on account of robust performance of La La Land, winner of six Academy Awards, John Wick: Chapter Two, and The Shack.
Segment profit came in at $52 million, up sharply from the year-ago-quarter of $2.5 million, primarily due to increase in revenues which more than offset direct operating expenses as well as marketing costs. Segment profit margins increased to 8.0% in the quarter from 0.4%.
Media Networks segment formed after the acquisition of Starz reported revenue of $370.8 million, up 1.4%. The segment profit increased 10.7% to $124.8 million. Operating profit margin expanded 290 basis points to 33.7%.
Television Production revenues dropped 3.5% to $242.6 million. Moreover, segment profit declined 69.1% to $13 million. Segment profit margin declined to 5.4% from 16.7% reported in the year-ago quarter.
Financial Details
Lions Gate ended the fourth quarter with cash and cash equivalents of $321.9 million, film obligations and production loans of $367.2 million and shareholders’ equity of $2,514.4 million. The company generated free cash flow of $189.4 million, in comparison with $92.9 million used in the prior-year quarter.
Lions Gate, which shares space with major studios like Twenty-First Century Fox, Inc. (FOXA - Free Report) , is a film studio engaged in the production and distribution of motion pictures for theater and straight-to-video release as well as television programming for cable and broadcast networks.
Lions Gate Entertainment Corporation Price, Consensus and EPS Surprise
Cumulus Media stock has surged more than 53% in the past one month.
NTN Buzztime shares have increased more than 20% in the past three months.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Lions Gate (LGF) Misses on Q4 Earnings, Tops Sales Estimate
Lions Gate Entertainment Corp. (LGF.A - Free Report) reported fourth-quarter fiscal 2017 quarterly numbers, wherein the company posted earnings per share of 28 cents, missing the Zacks Consensus Estimate by a penny.
On the revenue front, Lions Gate witnessed a sharp increase of 58.8% year over year to $1,256.1 million and also surpassed the Zacks Consensus estimate of $1,206 million. This can primarily be attributed to a surge in Motion pictures revenues and Starz acquisition. However, on a pro forma basis revenues increased 3%.
The company’s adjusted EBITDA came in at $162.7 million, in comparison with $0.7 million reported in the prior-year quarter. On a pro forma basis adjusted EBITDA increased 27% year over year. The company’s filmed entertainment backlog was nearly $1.4 billion at the end of the fiscal fourth quarter.
Not much movement was witnessed in after-hours trading session yesterday. Moreover, the stock has declined 44.6% in the past six months, underperforming the Zacks categorized Movie/TV Production/Distribution industry’s decrease of 3.4%.
Segmental Performance (On Pro forma basis)
Motion Pictures’ revenues increased 7.3% year over year to $654 million on account of robust performance of La La Land, winner of six Academy Awards, John Wick: Chapter Two, and The Shack.
Segment profit came in at $52 million, up sharply from the year-ago-quarter of $2.5 million, primarily due to increase in revenues which more than offset direct operating expenses as well as marketing costs. Segment profit margins increased to 8.0% in the quarter from 0.4%.
Media Networks segment formed after the acquisition of Starz reported revenue of $370.8 million, up 1.4%. The segment profit increased 10.7% to $124.8 million. Operating profit margin expanded 290 basis points to 33.7%.
Television Production revenues dropped 3.5% to $242.6 million. Moreover, segment profit declined 69.1% to $13 million. Segment profit margin declined to 5.4% from 16.7% reported in the year-ago quarter.
Financial Details
Lions Gate ended the fourth quarter with cash and cash equivalents of $321.9 million, film obligations and production loans of $367.2 million and shareholders’ equity of $2,514.4 million. The company generated free cash flow of $189.4 million, in comparison with $92.9 million used in the prior-year quarter.
Lions Gate, which shares space with major studios like Twenty-First Century Fox, Inc. (FOXA - Free Report) , is a film studio engaged in the production and distribution of motion pictures for theater and straight-to-video release as well as television programming for cable and broadcast networks.
Lions Gate Entertainment Corporation Price, Consensus and EPS Surprise
Lions Gate Entertainment Corporation Price, Consensus and EPS Surprise | Lions Gate Entertainment Corporation Quote
Zacks Rank & Stocks to Consider
Lions Gate currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering include Cumulus Media Inc. (CMLS - Free Report) and NTN Buzztime, Inc. . Both the stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cumulus Media stock has surged more than 53% in the past one month.
NTN Buzztime shares have increased more than 20% in the past three months.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>