Lions Gate Entertainment Corp
) reached a new 52-week high of $24.15 on Thursday, Mar 28, owing
to the company's strategic initiatives aimed at enhancing its
The company's stock eventually closed at $23.77, recording a
robust return of 40.9% year to date. The company currently trades
at a forward P/E of 25.7x, a 12.7% premium to the peer group
average of 22.81x.
Lions Gate is a film studio engaged in the production and
distribution of motion pictures for theater and straight-to-video
release as well as television programming for cable and broadcast
The company has been active in making strategic acquisitions
and alliances to enhance its competitive position, maximize
return and build a diversified portfolio for future growth. The
string of acquisitions includes companies like Summit
Entertainment, Artisan, Debmar-Mercury, Trimark, Redbus, TV Guide
Network and Mandate.
These acquisitions will further expand its filmed
entertainment library while boosting its feature film and home
During the last concluded quarter, Lions Gate posted earnings
of 37 cents a share, that improved significantly from the loss of
a penny registered in the comparable year-ago quarter and came
way ahead of the Zacks Consensus Estimate of 24 cents. Including
one time items, earnings came in at 27 cents a share.
Total revenue more than doubled during the quarter to $743.6
million, driven by sturdy performance of the theatrical segment,
which reflected solid performance of
The Twilight Saga: Breaking Dawn - Part 2
and other films. Moreover revenue gains at Home Entertainment and
International businesses boosted the results. The reported
revenue handily surpassed the Zacks Consensus Estimate of $686
At the end of the quarter, the company's filmed entertainment
backlog totaled $1.2 billion, reflecting strong future
revenues, which is encouraging.
Currently, Lions Gate, which competes with other major
studios, such as
) Fox Entertainment Group,
The Walt Disney Company
Time Warner Inc
), maintains a Zacks Rank #3 (Hold).
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