NEW YORK (TheStreet) -- Lions Gate Entertainment (LGF) shares are diving by 6.53% to $35.78 in after-hours trading on Monday, immediately following the company's weak second quarter 2016 earnings results, which were reported today after the closing bell.
For the quarter ended September 30, the company reported a loss of 19 cents per share on revenue of $476.8 million.
Analysts had expected the company to earn 3 cents a share on revenue of $491 million for the most recent quarter.
In the same period the year before, the company earned 15 cents a share on revenue of $552.9 million.
Overall, sales were impacted by a year-over-year decline in the company's motion picture segment. Sales were $354 million, down from $398 million a year ago.
In addition, theatrical revenue dropped to $26.3 million, with only two film releases in the latest quarter-- American Ultra and Shaun the Sheep.
"Although this quarter will be the lightest of the year due to timing and softer-than-anticipated performance of some of our recent film releases, our robust film and television pipelines position us for a very strong second half of the year," CEO Jon Feltheimer said in a statement.
Based in Santa Monica, CA, Lions Gate Entertainment engages in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, channel platforms, and international distribution and sales activities.
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 multiple 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.
You can view the full analysis from the report here: LGFLGF data by YCharts