Lions Gate 4Q Earnings Expected to Double

Lions Gate Entertainment Inc. (LGF) should see boffo fourth quarter earnings thanks to the runaway success of the Oscar-nominated movie Juno, BMO Capital analyst Jeffrey Hoskins says.

The analyst said in a research note that:

Although we expected the film to contribute positively ot Lions Gate's bottom line, extremely positive word-of-mouth and Oscar nominations drove carry-over box office revenue well beyond our expectations.

He added that the film about a pregnant teenager has grossed more than $200-million since its worldwide release in December.

He noted that Lions Gate films, The Bank Job and Rambo 4 should also contribute nicely to the quarter, and raised his earnings per share estimate from C$0.23 to C$0.48. That in turn, lowered his fiscal year 2008 loss estimate from C$0.66 to C$0.41.

Mr. Hoskins maintained his "outperform" rating and left his C$15 price target unchanged.