Lions Gate Upped to Strong Buy on Impressive Q1 Earnings - Analyst Blog

A generic image of multiple stacks of coins next to a pen.
Credit: Shutterstock photo

On Aug 13, 2014, Zacks Investment Research upgraded Lions Gate Entertainment Corp. ( LGF ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Lions Gate has been witnessing rising earnings estimates in the last 7 days on the back of strong first-quarter fiscal 2015 earnings. Moreover, this movie and television production company has delivered positive earnings surprises in the trailing four quarters with an average beat of 81.2%. The long-term expected earnings growth rate for this stock is 17.5%.

The company reported adjusted quarterly earnings of 27 cents a share, which rose over two-fold from 10 cents a share reported last year and also surpassed the Zacks Consensus Estimate of 13 cents. The improvement in adjusted earnings was backed by a fall in interest expense coupled with a lower tax rate.

The Zacks Consensus Estimate for fiscal 2015 and 2016 increased 10.3% and 2.8% to $1.60 and $1.81 per share respectively.

Lions Gate is fast emerging as a leading player in the media industry which boasts of stalwarts like The Walt Disney Co. ( DIS ) and CBS Corp. ( CBS ). With franchises like The Hunger Games and Divergent, the studio has tasted tremendous success. Lions Gate acquired Summit Entertainment in 2012 giving it the rights to the hugely popular young-adult fantasy themed Twilight series.

The studio is grabbing every possible opportunity to expand its presence and soon might become a recognizable power within the media circle.

Other Stocks to Consider

Other home furnishings retailers with a favorable Zacks Rank include Disney and Pearson plc ( PSO ). Both carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CBS CORP (CBS): Free Stock Analysis Report

LIONS GATE ETMT (LGF): Free Stock Analysis Report

DISNEY WALT (DIS): Free Stock Analysis Report

PEARSON PLC-ADR (PSO): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

Earnings Stocks

Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More