Lions Gate Entertainment Second Quarter Earnings Sneak Peek

Lions Gate Entertainment Corp. (NYSE:LGF) will unveil its latest earnings on Thursday, November 8, 2012. Lions Gate Entertainment is engaged in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand, and digitally delivered content.

Lions Gate Entertainment Corp. (NYSE:USA) Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 9 cents per share, up from net loss of 27 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 37 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 12 cents during the last month. For the year, analysts are projecting net income of 56 cents per share, a swing from a loss of 60 cents last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported net loss of 26 cents per share against a mean estimate of 9 cents. Two quarters ago, it beat expectations by 3 cents with profit of 21 cents.

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A Look Back: In the first quarter, the company swung to a loss of $44.2 million (33 cents a share) from a profit of $12.2 million (9 cents) a year earlier, missing analyst expectations. Revenue rose 80.6% to $471.8 million from $261.3 million.

Wall St. Revenue Expectations: On average, analysts predict $621.8 million in revenue this quarter, a rise of 73.6% from the year-ago quarter. Analysts are forecasting total revenue of $2.52 billion for the year, a rise of 58.5% from last year’s revenue of $1.59 billion.

Stock Price Performance: Between August 9, 2012 and November 2, 2012, the stock price rose $3.03 (22.9%), from $13.25 to $16.28. The stock price saw one of its best stretches over the last year between June 4, 2012 and June 14, 2012, when shares rose for nine straight days, increasing 20.1% (+$2.38) over that span. It saw one of its worst periods between October 3, 2012 and October 12, 2012 when shares fell for eight straight days, dropping 4.2% (-66 cents) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 71.2% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.31 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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