Lions Gate and DreamWorks Under StockCall's Microscope: Movie Studios Churn out Blockbusters

 Lions Gate and DreamWorks Under StockCall's Microscope: Movie Studios Churn
                               out Blockbusters

  PR Newswire

  LONDON, February 14, 2013

LONDON, February 14, 2013 /PRNewswire/ --

Movie studios are constantly evolving and the latest trend is towards
technologically advanced animation techniques. New advances have greatly
increased the cost factor for the studios. While movie production companies
like Lions Gate Entertainment Corp. (NYSE: LGF) are raking in good money on
the back of their successful franchise and blockbusters, others like
DreamWorks Animation SKG Inc. (NASDAQ: DWA) are languishing as they try to
curtail their costs. While overall trend in movie production sector is upbeat,
there is also excess capacity buildup. In order to reverse such excess,
DreamWorks Animation recently announced mass layoffs. StockCall has released
full comprehensive research on Lions Gate Entertainment and DreamWorks
Animation and these free technical analyses can be downloaded by signing up at

http://www.stockcall.com/technicalanalysis

Lions Gate Entertainment Reports Q3 Results

Lions Gate Entertainment is riding the wave with its spate of blockbusters.
The company reported strong numbers for its third quarter with revenue
standing at $743.6 million, crushing consensus estimates of $719.5 million in
revenue. Its EPS also got better at 27 cents per share, while it was expected
to report per share earnings of 20 cents. Lions Gate Entertainment capped the
overall good results by reporting improvement in its margins as well. Free
technical analysis on Lions Gate Entertainment Corp. available by signing up
at

http://www.StockCall.com/LGF021413.pdf 

Lions Gate Entertainment is looking to boost its margins as it is expected to
grow its fourth quarter EPS to 42 cents per share, but its revenue for the
quarter is likely to remain subdued at $701.6 million. In the past couple of
quarters, Lions Gate Entertainment capitalized on its blockbusters like
Twilight franchise and The Hunger Games.

Going forward, the company would need a new catalyst to drive up its stock
price. However, it is not pinning all its hopes to big budget blockbusters.
The company is equally invested in smaller low risk productions. It also
focuses on TV developments and has had good results through popular shows like
Mad Men. The diversification will help the company in avoiding over-reliance
on one model. The stock is up 23 percent so far this year and it has come a
long way from Carl Icahn's days. The stock offers a good investment
opportunity.

DreamWorks Animation Inks New Netflix Deal

DreamWorks Animation is having its share of bad and good news. The company
recently inked a deal with Netflix to develop original series for children. On
the downside, DreamWorks Animation also announced its layoff plans. The
company is looking to eliminate between 250 to 450 positions in order to cut
costs. The layoff would reduce DreamWorks Animation's workforce by 20 percent.
Register today and access the free research on DreamWorks Animation SKG Inc.at

http://www.StockCall.com/DWA021413.pdf 

DreamWorks Animation is also finding it difficult to stick to its plans. The
company aimed for three films releases a year, but now it announced delaying
the release of Mr. Peabody and Sherman. DreamWorks Animation also announced
suspending production of 'Me and My Shadow'. With this rescheduling, the
studio now has only 'The Croods' and "Turbo' to be released this year. The
company also reported that it would need to adjust its operating
infrastructure costs due to rescheduling. The stock tumbled following the
news.

DreamWorks Animation relies on computer animated films and recent news about
rescheduling and layoffs has dented investors' confidence. The studio's
financials are also expected to suffer. However, the company garnered Hedge
Fund interest as Horizon Kinetics upped its stake in the studio. The stock is
expected to remain subdued in 2013 but could pick up in 2014.

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