Lions Gate Shares Rise to Four Month High On Profits Beat

Lions Gate Entertainment Corp. rose the most in 21 months after reporting first-quarter earnings that beat analysts’ estimates, helped by profit margins in its film and television businesses.

The shares jumped 7.5 percent to $32.63 at the close in New York, the biggest one-day gain since Nov. 13, 2012. They have increased 3.1 percent this year.

Lions Gate, the Santa Monica, California-based studio that makes “Mad Men” and “Hunger Games,” reported adjusted earnings per share of 34 cents in the quarter ended June 30, according to a statement yesterday. That beat the 20 cent average of analysts’ estimates compiled by Bloomberg.

Chief Executive Officer Jon Feltheimer said on a conference call today that the company’s margins were “strong” and expects them to expand to 11 percent this year from 7 percent. Adjusted earnings before interest, taxes, depreciation and amortization rose 27 percent to $77.3 million in the quarter.

Barton Crockett, an analyst at FBR Capital Markets, said Lions Gate’s Ebitda was $17 million above his $60 million estimate. Crockett, who is based in New York, rates the shares outperform, the equivalent of a buy.

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