Lions Gate Shares Hit 3-year Low Following Weak Earnings Report

Shares of Lions Gate Entertainment Corp. were in a free-fall Friday morning, down more than 28%, as management addressed the company's weak third-quarter results on a call with analysts and investors. Lions Gate's shares hit a three-year low in intraday trade, and were on pace for the biggest price and percentage declines since the company went public in November 1998. The film and TV studio reported late Thursday fiscal third-quarter per-share earnings of 26 cents and revenue of $671 million in revenue, both well below analysts expectations, according to FactSet. Lions Gate Chief Executive Jon Feltheimer said the company's lackluster earnings were the result of poorer box office performance for its film category. The company also said Thursday it was considering a merger with cable network Starz Inc.