×
You will be redirected back to your article in seconds

Lionsgate Stock Jumps 8.65% in Wake of Strong Earnings Report

Stock of Lionsgate has surged 8.65%, buoyed by a stronger-than-expected quarterly earnings report.

Class A shares gained $2.21 to close at $27.76 in trading on the New York Stock Exchange. It was the highest close since Jan. 28.

After the market closed Thursday, Lionsgate reported better-than-expected earnings of $62 million, or 30 cents a share, for its fourth quarter ended March 31 — topping Wall Street forecasts of 22 cents a share and far above year-ago earnings of $10.9 million. Revenues also came in above expectations at $1.26 billion, while analysts had been forecasting $1.19 billion.

It’s the second earnings report for the studio since its Dec. 8 acquisition of Starz for $4.4 billion. That transaction generated $89 million in restructuring and other costs primarily associated with the acquisition and subsequent integration of Starz.

Lionsgate’s movie operations have been buoyed by its comedy-drama “La La Land,” which won six Academy Awards and grossed $443 million in worldwide box office. The whimsical musical carried a production cost of only $30 million.

Motion picture segment revenues increased 7.3% to $654 million, driven by “La La Land,” “John Wick: Chapter Two,” and “The Shack.” Segment profit jumped to $52 million from $2.5 million as higher revenue more than offset operating expenses and marketing expenditures.

Analysts issued more than half a dozen upbeat reports on Friday. Evercore repeated its “outperform” rating and its $31 price target, citing “industry leading growth potential.”

“Lionsgate’s F4Q17 beat on content sales, margins, and taxes; investors should focus on the industry-leading growth guidance,” said Evercore analysts David Joyce and John Belton. “Motion picture divisional revenue had a great quarter reflecting their releases, but a lot was spent to achieve it. TV production results were a little lighter than expected due to challenging international content sales comparisons. Media Networks (Starz) outperformed with content licensing and cost controls.”

More Film

  • The Lighthouse

    Cannes: Directors' Fortnight Unveils Lineup

    Robert Eggers’s anticipated “The Lighthouse” with Robert Pattinson and Willem Dafoe, Bertrand Bonello’s “Zombi Child” and Japanese helmer Takashi Miike’s “First Love” are set to unspool at Cannes’ Directors Fortnight under the new leadership of Paolo Moretti. Described by Moretti as a “hypnotic two-hander” powered by Pattinson and Dafoe, “The Lighthouse” is fantasy horror film [...]

  • Media Luna Acquires ‘We Had It

    Cannes Festival: Media Luna Takes ‘We Had It Coming,’ ‘The Friendly Man’ (EXCLUSIVE)

    In the run-up to next month’s Cannes Festival, Cologne-based Media Luna New Films has acquired international rights to “We Had It Coming,” starring Natalie Krill (“Wynonna Earp,” “Below Her Mouth”) and Brazil’s “The Friendly Man,” one of the standouts at Ventana Sur’s strong Copia Final showcase of near-finished Latin American movies. MK2 Mile End will [...]

  • ‘Avengers: Endgame’ Stars Make Emotional Speeches

    ‘Avengers: Endgame’ Stars Make Emotional Speeches at Historic Marvel Premiere

    If more than twenty worldwide blockbusters over ten years sounds like a big undertaking, try locking up the cell phones and smartwatches of Hollywood’s most important people for four hours. Only a franchise with the cache of the “Avengers” series could have A-list talent, celebrity fans, agents and executives gladly turn over their gadgets for [...]

  • Avengers: Endgame

    'Avengers: Endgame' First Reactions: 'Most Emotional, Most Epic MCU Film'

    The end is finally here. “Avengers: Endgame” had its world premiere Monday night at the Los Angeles Convention Center and reactions on social media from fans, journalists and critics are already pouring in. The reaction has so far been almost universally positive, with several commentors warning fans of the movie’s emotional elements. Brandon Davis wrote [...]

  • Josh Brolin, Kathryn Boyd. Josh Brolin,

    'Avengers: Endgame's' Josh Brolin: Thanos' Butt Is a 'Beautiful, Purple Peach'

    On the eve of “Avengers: Endgame’s” world premiere, everyone’s thoughts have turned to the one crucial detail that could be the difference between life or death for the Avengers: Does Thanos have a butt? “I don’t know what that whole thing is about! I really don’t!” Josh Brolin, who plays Thanos, told Variety‘s Marc Malkin [...]

  • Tessa Thompson'Avengers: Endgame' Film Premiere, Arrivals,

    'Avengers: Endgame's' Tessa Thompson Says Valkyrie Would Spoon Captain Marvel, Thor

    Tessa Thompson, who plays Valkyrie in the Marvel Cinematic Universe and upcoming “Avengers: Endgame,” had no problem addressing speculation about the character’s sexuality at the “Endgame” red carpet premiere Monday. The “Sorry to Bother You” actress explained that she played her Marvel character as bisexual. “In the canon, [Valkyrie] is bisexual. You see her with [...]

  • WGA Agency Packaging Fight Placeholder Writer

    Writers Guild Says Over 7,000 Members Have Fired Agents

    Over 7,000 members of the Writers Guild of America have fired their talent agents, the Hollywood union said on Monday. As promised, the guild delivered a first round of termination letters to agents in a show of support for the WGA’s full-on war with the Association of Talent Agents. “Today the Guild delivered a first [...]

More From Our Brands

Access exclusive content