With a collection of nearly $56 million (as per studio
Lions Gate Entertainment Corp
) highly anticipated action flick
emerged strongly at the box office in its opening weekend.
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The only other significant release was
The Walt Disney Company
The Muppets Most Wanted
- a sequel to the 2011 blockbuster Muppets that raked in a
disappointing $16.5 million compared with roughly $29.2 million
that last Muppets earned in its opening weekend.
Last week, before the release,
garnered weak reviews from critics, leading to downward revisions
of the box office collections estimate. Consequently, Lions Gate
witnessed its market cap erode nearly 9% in a single week.
However, fans gave thumbs up to the movie, much to the relief of
the media house. Made at a budget of $85 million, trade analysts
observe that next week collections are likely to cross the $100
million mark, marking the media house's entry into profits.
, Lions Gate is looking at a new money making franchise, on the
lines of the hugely successful
The Hunger Games
. These young adult fantasy adaptations propelled Lions Gate to
soaring heights. However, it must be mentioned that the
are way below the record opening weekend collections of
The Hunger Games
fared much better compared to movies in the same genre like
The Mortal Instruments: City of Bones
, all of which were box office duds.
We believe that
was unlikely to reach phenomenal success at the box office,
primarily due to its clichéd theme and weak reviews. However,
with a good opening, Lions Gate is now possibly looking at a
profitable franchise, though not as big as
. Therefore, in any case, it remains a clear win.
is based on Veronica Roth's book by the same name and is directed
by Neil Burger. It is the first installment of the trilogy
in the lead. The futuristic book is set in dystopian Chicago and
depicts young Tris Prior's (Woodley) coming of age. Lions Gate is
likely to commence the production of the second installment
in May 2014.
Currently, Lions Gate carries a Zacks Rank #3 (Hold). Other
stocks worth considering in the media/publishing sector include
Digital Cinema Destinations Corp.
A. H. Belo Corporation
) and Disney. All of these have a Zacks Rank #2 (Buy).