Lions Gate Tops Estimates on Home Entertainment; Shares Advance

Lions Gate Entertainment Corp. (LGF), the studio behind the Netflix Inc. (NFLX) series “Orange Is the New Black,” posted first-quarter results that beat analysts’ estimates on TV and home entertainment gains. The shares soared.

Net income amounted to $13.6 million, or 10 cents a share, compared with a loss of $44.2 million, or 33 cents, a year earlier, the Vancouver-based studio, also the producer of TV’s “Mad Men,” said today in a statement. Excluding some items profit totaled 18 cents, double the 9-cent average of five estimates compiled by Bloomberg.

“Orange Is the New Black,” a comedy about a women’s prison, began showing July 11 on Netflix, which has already ordered a second season. Films released in the period included “Now You See Me,” a thriller about magicians who pull off a bank heist. It has taken in $233 million worldwide on a budget of $75 million, according to researcher Box Office Mojo.

Sales rose 21 percent to $569.7 million in the quarter ended June 30, beating the $523 million average of nine estimates.

Lions Gate, run from Santa Monica, California, rose 5.2 percent to an all-time high of $36 in extended trading after the results. The shares gained 0.6 percent to $34.23 at the close in New York and have more than doubled this year.

(Lions Gate plans a conference call at 9 a.m. New York time tomorrow. Call 1-800-230-1059 to listen.)

To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.