Shares were plummeting dropped 12% to $25.86.
The Vancouver-based movie studio earned 35 cents a share in its year-ending quarter, a nickel less than what analysts surveyed by Thomson Reuters expected. A year earlier, the company earned 51 cents a share.
Sales of $721.86 million fell from $785.7 million in the year-ago quarter. Revenue failed to meet analysts' estimates in a three-month period sandwiched between the third quarter's Hunger Games: Catching Fire blockbuster release and the late-March release of Divergent, its next young-adult dystopian franchise. The latter, though earning $266 million worldwide at the box office, contributed only 10 days' worth of revenue to the fourth quarter.
Other releases from January to March included I, Frankenstein and The Legend of Hercules which, though proving modestly successful, failed to garner as much attention or sales as the studio's tentpole franchise The Hunger Games.
Separately, TheStreet Ratings team rates LIONS GATE ENTERTAINMENT CP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIONS GATE ENTERTAINMENT CP (LGF) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
- You can view the full analysis from the report here: LGF Ratings Report