Lions Gate (NYSE:LGF) reported its quarterly earnings results late on Thursday, bringing in results that were largely below what Wall Street called for as both the company’s profit and its revenue were weaker than projected, playing a role in LGF stock falling after hours.
The Santa Monica, Calif.-based entertainment company said that for its fourth quarter of its fiscal 2019, it brought in sales of $913.7 million, which marked a decline from the same quarter a year ago. Wall Street said in its consensus estimate that it called for the business to bring in a profit of $947.7 million.
Lions Gate added that its profit tallied up to 11 cents per share, which missed analysts’ outlook of 22 cents per share. The company has also been in talks to sell its Starz channel to CBS, but it reportedly rejected an informal bid that tallied up to roughly $5 billion, according to people with knowledge of the matter.
The business was negatively impacted by a smaller film slate, as well as a drop in TV production revenue that led to lower sales and profit for the period. Additionally, theatrical releases from Lions Gate such as Cold Pursuit were unable to perform as well as expected.
LGF stock is down about 3.8% after the bell on Thursday following the company’s underwhelming quarterly earnings results that included sales that missed expectations and fell year-over-year. Shares had been falling roughly 0.3% during regular trading hours.
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