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Lionsgate (LGF.A) Q3 Earnings Lag Estimates, Revenues Rise Y/Y

Lionsgate (LGF.A) reported adjusted earnings of 2 cents per share for the third quarter of fiscal 2022 that lagged the Zacks Consensus Estimate by 90.48%. The figure declined 90.5% year over year.

Revenues increased 5.9% year over year to $885.4 million but lagged the consensus mark by 10.71%.

Segment Details

Motion Picture (31.1% of revenues) revenues increased 10% year over year to $275.3 million. The segment generated a profit of $67.5 million, up 24.5% year over year.

Television Production (49.5% of revenues) revenues surged 92.2% year over year to $438.6 million. Segmental profit was $19.3 million, which declined 34.6% year over year.

Media Networks’ segment (43.9% of revenues) reported revenues of $388.9 million, down 4.3% year over year. Segmental profit decreased 65.1% to $28.5 million.

Starz Networks’ revenues decreased 3.4% year over year to $362.5 million.

STARZPLAY International revenues in the quarter surged 49.2% year over year to $26.4 million.

Media Networks’ global subscribers reached 31.4 million, including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust domestic and international streaming subscriber growth.

Global streaming subscribers increased 44% year over year to 19.7 million. STARZPLAY International subscribers grew 98% year over year to 8.5million.

Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise

Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise

Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote

Operating Details

Lionsgate’s adjusted OIBDA declined 31.5% year over year to $91.6 million in the reported quarter.

Direct operating expenses, as a percentage of revenues, expanded 360 basis points (bps) on a year-over-year basis to 58.5%.

Distribution and marketing expenses, as a percentage of revenues, expanded 140 bps on a year-over-year basis to 22.5%.

Moreover, general & administrative expenses, as a percentage of revenues, decreased 110 bps year over year to 12.7%.

Operating income was $9.3 million in the reported quarter, down 74.9% year over year.

Balance Sheet & Cash Flow

As of Dec 31, 2021, Lionsgate had cash and cash equivalents of $314.4 million compared with $442.6 million as of Sep 30, 2021.

Net cash outflow from operating activities was $157.3 million at the end of the fiscal third quarter compared with $16.1 million of cash inflow at the end of the previous quarter.

Adjusted free cash outflow was $23 million against a free cash inflow of $195.2 million in the previous quarter.

Zacks Rank & Stocks to Consider

Currently, Lionsgate carries a Zacks Rank #5 (Strong Sell).

Lionsgate’s shares have returned 1.5% against the Zacks Consumer Discretionary sector’s decline of 19.4% in the past year.

Rocky Brands RCKY, JAKKS Pacific JAKK and Wolverine World Wide WWW are some better-ranked stocks in the broader Consumer & Discretionary sector. Rocky Brands and Jakks Pacific sport a Zacks Rank #1 (Strong Buy) while Wolverine World Wide carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rocky Brands’ shares have returned 12.7% against the Zacks Consumer Discretionary sector’s decrease in the past year.

RCKY is scheduled to report fourth-quarter 2021 results on Feb 23, 2022.

Jakks Pacific’s shares have returned 6.4% in the past year.

JAKK is slated to report fourth-quarter 2021 results on Feb 17, 2022.

Wolverine World Wide’s shares have slumped 18% in the past year.

WWW is scheduled to report fourth-quarter 2021 results on Feb 24, 2022.


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