Lions Gate Reaches Record High as Results Beat Estimates
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.)
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