Lions Gate up as 3Q results top Wall Street's view
NEW YORK (AP) — Shares of Lions Gate Entertainment Inc. rose Friday as its third-quarter performance beat Wall Street's view thanks to the box office success of "The Hunger Games: Catching Fire."
Late Thursday Lions Gate Entertainment reported earnings of 59 cents per share on revenue of $839.9 million. Analysts polled by FactSet predicted earnings of 46 cents per share on revenue of $833.5 million.
The next big hit for Lions Gate could be "Divergent," set for release on March 21. The science fiction action movie is based on a book of the same name, part of a best-selling trilogy.
"We believe this will be an opportunity for Lions Gate to prove that it is able to come up with a pipeline of strong franchises (versus) being dependent on just a few," wrote Cowen and Co. analyst Doug Creutz in a client note.
The studio released the "Twilight" movies as well as "Hunger Games," whose next installment is due in theaters in November.
Lions Gate Entertainment's stock added $1.21, or 3.8 percent, to $32.94 in midday trading. The shares had gained 65 percent in the last year.