Analysts are expecting the motion picture production and distribution company to post a year over year decline in both its earnings per share and revenue results for the most recent quarter.
Lions Gate has been forecast to report earnings of 3 cents per share on revenue of $491 million for the three month period ending in September.
The company's earnings came in at 15 cents per share on revenue of $552.9 million for the fiscal 2015 second quarter.
Shares of Lions Gate Entertainment closed up by 1.16% to $39.37 on Friday afternoon.
Additionally, the final installment of the company's widely popular Hunger Games movie franchise will be released on November 20. The film, Hunger Games: Mocking Jay -Part 2, starring Jennifer Lawrence, is expected to earn at least $121.5 million in its opening debut.
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 a number of strengths, 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 expanding profit margins, notable return on equity and solid stock price performance. We feel its 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:
- LIONS GATE ENTERTAINMENT CP's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LIONS GATE ENTERTAINMENT CP increased its bottom line by earning $1.24 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($1.51 versus $1.24).
- 43.68% is the gross profit margin for LIONS GATE ENTERTAINMENT CP which we consider to be strong. Regardless of LGF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.94% trails the industry average.
- LGF, with its decline in revenue, underperformed when compared the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income has decreased by 6.0% when compared to the same quarter one year ago, dropping from $43.26 million to $40.68 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: LGF