Lions Gate Entertainment Corp. (LGF:US), the studio behind the Netflix Inc. (NFLX:US) series “Orange Is the New Black,” posted first-quarter results that beat analysts’ estimates on TV and home entertainment gains. The shares soared.
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 today in a statement. Excluding some items profit totaled 18 cents, double the 9-cent average of five estimates (LGF:US) 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.
Lions Gate, run from Santa Monica, California, rose 5.2 percent to an all-time high of $36 in extended trading after the results. The shares (LGF:US) gained 0.6 percent to $34.23 at the close in New York and have more than doubled this year.
(Lions Gate plans a conference call at 9 a.m. New York time tomorrow. Call 1-800-230-1059 to listen.)
To contact the reporter on this story: Christopher Palmeri in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Palazzo at email@example.com