Lions Gate Entertainment Corp. Earnings: "Mockingjay" Doesn't Fly High Enough as Stock Falls


Liam Hemsworth as Gale Hawthorne in The Hunger Games: Mockingjay -- Part 1. Credit: Lionsgate via Facebook.

Shares of Lions Gate Entertainment stock is down 3% after hours after reporting lower-than-expected revenue and profit in its fiscal third quarter. Here's a closer look at the final totals versus Wall Street's projections:

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Sources: S&P Capital IQ and Lions Gate press release.

In a press release, CEO John Feltheimer said:

What went right:TV production was every bit the success Feltheimer claims. Revenue from that group nearly doubled, to $161.2 million, thanks to record output. Cable and broadcast programmers took delivery of 74 episodes and 58.5 hours of domestic television programming in the quarter. Internationally, Lions Gate licensed episodes ofAnger Management,Orange is the New Black,Nashville,andMad Men.

What went wrong:Overall revenue in the Motion Picture segment fell 22%, to $590.1 million. Lions Gate had just two wide-release films screened during fiscal Q3 versus four in the prior-year quarter. A drop in revenue fromThe Hunger Games franchise also appears to be partly to blame. This year's Mockingjay -- Part 1 has earned $714.3 million worldwide, 17.4% less than last year'sCatching Fire.

What's next:Lions Gate didn't include guidance in its press release. What do analysts say? According toS&P Capital IQ, the company is on track to earn $734.28 million in fiscal fourth-quarter revenue, and $0.45 in adjusted profit. Both figures would make for a significant improvement over the same period last year ($721.86 million in revenue and a $0.42 per share of profit, respectively).

Longer term, analysts have Lions Gate generating 18.45% average annual earnings growth during the next three-to-five years.

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