Lions Gate Reaches Record High as Results Beat Estimates
Stock Chart for Lions Gate Entertainment Corp (LGF)
Lions Gate Entertainment Corp. (LGF), the studio behind the Netflix Inc. (NFLX) series “Orange Is the New Black,” rose to a record in late trading yesterday after it posted quarterly results that beat analysts’ estimates on TV and home entertainment gains.
Shares in the company rose 3.6 percent to an all-time high of $35.47 after the results yesterday. The stock had gained 0.6 percent to $34.23 at the close in New York.
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 in a statement yesterday. 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.
Shares of Lions Gate, run from Santa Monica, California, have more than doubled this year, compared with a 19 percent gain in the Standard & Poor’s 500 Index.
(Lions Gate plans a conference call at 9 a.m. New York time today. Call 1-800-230-1059 to listen.)
To contact the reporter on this story: Christopher Palmeri in Los Angeles at email@example.com
To contact the editor responsible for this story: Anthony Palazzo at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.