Lions Gate (LGF.A) Moves 5.2% Higher: Will This Strength Last?
Lions Gate Entertainment (LGF.A) shares ended the last trading session 5.2% higher at $8.86. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.3% gain over the past four weeks.
Increased optimism over strong pipeline of content on Starz’s platforms that is expected to boost viewership and increase the subscriber base of Lionsgate's OTT platforms in the near term drove the stock higher. Management has been planning to spend cautiously on content and not chase subscribers, therefore focusing on profitability. It would now also look for bundling and packaging opportunities.
This motion picture producer and distributor is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +41.7%. Revenues are expected to be $983.46 million, up 12.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Lions Gate, the consensus EPS estimate for the quarter has been revised 23.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LGF.A going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lions Gate is part of the Zacks Film and Television Production and Distribution industry. Imax (IMAX), another stock in the same industry, closed the last trading session 1.1% higher at $18.74. IMAX has returned -2.9% in the past month.
Imax's consensus EPS estimate for the upcoming report has changed +33.3% over the past month to $0.15. Compared to the company's year-ago EPS, this represents a change of +400%. Imax currently boasts a Zacks Rank of #3 (Hold).
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