NEW YORK (TheStreet) -- Shares of Lions Gate Entertainment (LGF) are jumping by 8.1% to $21.36 late Thursday morning, after the Santa Monica, CA-based company reported solid results for the 2016 fourth quarter.
After yesterday's closing bell, the motion picture producer and distributor posted adjusted earnings of 7 cents per share, while analysts were expecting a loss of a penny per share.
Revenue rose to $791 million from $646 million last year and surpassed analysts' projections of $741 million.
The new global deal for Lions Gate-produced Netflix (NFLX) series Orange is the New Black and the Pilgrim Studios acquisition from November 2015 boosted revenue, the company said.
Strong performance from TV production offset relative film weakness and drove better-than-feared results, Pacific Crest said in a note to investors.
"The shift to on-demand viewing continues to increase competition for quality TV and movies and drive investment in content, which we believe creates secular tailwinds and a favorable risk/reward for LGF," the firm added.
"Our television business had a record year with all categories contributing great results, and we expect its strong growth to continue this year," CEO Jon Feltheimer stated.
"Although last year's film slate didn't match the performance of previous years, this year's slate is bigger, more balanced and is expected to generate greater profitability," he added.
About 4.3 million of Lions Gate's shares were traded so far today vs. its average volume of 1.94 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LGF