In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from Lions Gate, and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last two quarters. In the last quarter, it reported ($0.17) loss per share, failing to meet analysts' estimates of $0.26.
The consensus EPS estimate is $0.09 based on 8 analysts' estimates, same as $0.09 a year ago. Revenue estimates are $447.34M, up from $261.26M a year ago. Analysts' median target price for the stock is $18.00.
Average recommendation: Buy
Analyst Upgrades and Downgrades
- On April 22, 2012, Caris & Company upgraded the company from Average to Above Average.
- On April 18, 2012, Stifel Nicolaus reiterated a Buy rating for the company.
- On March 26, 2012, Stifel Nicolaus reiterated a Buy rating for the company.
- On March 22, 2012, Caris & Company upgraded the company from Sell to Below Average.
- On March 21, 2012, Stifel Nicolaus reiterated a Buy rating for the company.
- On February 28, 2012, Wunderlich reiterated a Buy rating for the company.
- On February 13, 2012, Caris & Company downgraded the company from Below Average to Sell.
- On July 19, 2012, Lionsgate's acclaimed AMC drama Mad Men and hit Showtime comedy Nurse Jackie earned a total of 22 Emmy® nominations, including a fifth consecutive drama series nomination for Mad Men, which made history last year with its fourth consecutive win tying the all-time Emmy® record in the category, and a third consecutive comedy nomination for four-time Emmy® winner Edie Falco, who won the Lead Actress trophy for her role in the first season of Nurse Jackie.
- On July 5, 2012, Anger Management continues to set the world on fire as Comedy Central UK announced that it has acquired exclusive UK broadcast rights to the Charlie Sheen sitcom from Lionsgate's international television division.
- On June 12, 2012, Universal Pictures acquired distribution rights in Italy to The Hunger Games: Catching Fire, the next installment of Lionsgate's blockbuster Hunger Games franchise. The announcement was made by Lionsgate Motion Picture Group Co-Chairs Patrick Wachsberger and Rob Friedman.
- On June 7, 2012, Lionsgate and its Grindstone Entertainment Group and Emmett/Furla Films, a prolific producer of filmed entertainment featuring some of the leading actors and filmmakers in the industry today, renewed their slate deal for another 10 films and expanded their overall relationship.
- On May 30, 2012, Lionsgate reported revenue of $645.2 million, EBITDA of $6.8 million, adjusted EBITDA of $30.0 million and net loss of $22.7 million or $(0.17) per share for the fourth quarter of Fiscal 2012 (quarter ended March 31, 2012).
- On March 5, 2012, Youku Inc announced that it has signed a licensing agreement with Lionsgate, a diversified global entertainment company. The deal was arranged through Celestial Tiger Entertainment, the exclusive sales agent for Lionsgate in Greater China and Southeast Asia.
DreamWorks Animation (DWA), News Corporation (NWSA), and Time Warner (TWX) are peers for comparison for Lions Gate Entertainment Corp. and the table below provides the key metrics for these companies and the industry:
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period:
Competitors' Latest Developments
- On July 23, 2012, DreamWorks Animation SKG, Inc. announced that it has entered into an agreement to acquire Classic Media, owner of one of the portfolios featuring many of the known and enduring franchises in all of family entertainment, for $155 million in cash from Boomerang Media Holdings I LLC, a portfolio company of Chicago-based private equity firm GTCR.
- On June 28, 2012, The News Corporation announced that it intends to pursue the separation of publishing and media and entertainment businesses into two distinct publicly traded companies.
- On June 28, 2012, Reuters reported that the Board of The News Corporation has approved in principle the split of its publishing and entertainment businesses into two separate publicly traded companies, the Wall Street Journal reported.
- On June 26, 2012, Reuters reported that according to The Wall Street Journal, The News Corporation is thinking of splitting into two companies. A final decision on the split has not been made, the paper said, adding that the Murdoch family is not expected to lose its effective control of any of the businesses involved.
- On June 20, 2012, Reuters reported that The News Corporation announced sweeping changes in Australia, including job cuts and shrinking the number of its divisions from 19 to five, the latest local media group to restructure in the face of declining ad sales.
- On June 20, 2012, The News Corporation announced that it notes the statement made by Consolidated Media Holdings Limited regarding a proposal by News Limited to acquire Consolidated Media at a price of AUD 3.50 per share.
- On June 9, 2012, Time Warner Inc announced that it has priced a $500 million underwritten public offering of 3.40% senior notes due 2022 at a price equal to 99.857% of their face amount and a $500 million underwritten public offering of 4.90% debentures due 2042 at a price equal to 98.929% of their face amount.
- On June 8, 2012, Time Warner Inc announced that it has commenced an underwritten public offering of up to $1 billion of debt securities split between senior notes due 2022 and senior debentures due 2042.
- On June 6, 2012, Reuters reported that The News Corporation has taken full control of its Asian joint venture ESPN STAR Sports (ESS), buying out The Walt Disney Company's 50% share to end a 16-year partnership in the region.
- On June 6, 2012, The News Corporation and ESPN announced that they have entered into a definitive agreement under which a unit of News Corporation will buy ESPN's 50% equity interest in ESPN STAR Sports .
- On May 2, 2012, Time Warner Inc. reaffirmed fiscal 2012 earnings guidance and expects full year percentage growth rate in adjusted diluted net income per common share (adjusted EPS) to be in the low double digits off a 2011 adjusted EPS base of $2.89. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $3.19 for fiscal 2012.
- On May 1, 2012, Time Warner Inc announced that its Board of Directors declared a regular quarterly cash dividend of $0.26 per share on its Common Stock, payable in cash on June 15, 2012, to stockholders of record at the close of business on May 31, 2012.
- On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of Time Warner Inc will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker TWXB11B.
- On February 21, 2012, Rentrak Corporation announced a Network TV Essentials contract with News Corp Star U.S., LLC for network, Star TV, which is one of the networks serving the South Asian market.
- On February 8, 2012, The News Corporation announced that it has declared a dividend of $0.085 per Class A share and Class B share. This dividend is payable on April 18, 2012 with a record date for determining dividend entitlements of March 14, 2012.
- On February 8, 2012, Time Warner Inc announced that for fiscal 2012, it expects percentage growth rate in Adjusted Diluted Net Income per Common Share (Adjusted EPS) to be in the low double digits off a 2011 Adjusted EPS base of $2.89. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.18 for fiscal 2012.
The stock has a market capitalization of $1.91B and is currently trading at $13.30 with a 52 week range of $6.17 - $16.19. The stock's year-to-date performance has been 58.77%. It is currently trading above 200 SMA, but below 20 and 50 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.