Bloomberg News

Lions Gate Rises to Record as Quarterly Profit Beats Estimates

August 09, 2013

Lions Gate Entertainment Corp. (LGF:US), the studio behind the Netflix Inc. (NFLX:US) 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 (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.

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.)

To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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Companies Mentioned

  • LGF
    (Lions Gate Entertainment Corp)
    • $32.93 USD
    • -0.04
    • -0.12%
  • NFLX
    (Netflix Inc)
    • $449.16 USD
    • -2.02
    • -0.45%
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