Why Lions Gate Entertainment (LGF) Stock Is Down

NEW YORK (TheStreet) -- Shares of Lions Gate Entertainment Corp. (LGF) are down -6.26% to $27.68 in after-hours trading following the entertainment company's release of its fourth quarter earnings ended March 31.

The company reported earnings of $49.2 million, or 35 cents per share, well below Wall Street estimates of 40 cents per share, according to Variety.

Quarterly profits declined 70% from earnings of $163 million in the year-ago period.

Revenues were $721.9 million, down 8% from the year-ago quarter's $785.7 million.

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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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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