Bear of the Day: Lions Gate (LGF)

Lions Gate Entertainment (LGF) delivered lower-than-expected first quarter 2011 results. The company reported a quarterly loss of $0.54 per share, reflecting a sharp drop from the earnings of $0.25 posted in the prior-year quarter, and missing the Zacks Consensus Estimate of $0.03.

The results were hurt by the fall in the top-line and rise in theatrical marketing costs. The escalating cost of motion picture production and marketing may also jeopardize the company’s margins. Moreover, the intense competition from major studios may also result in lower box office receipts.

Last but not least, the company is also currently the subject of a hostile takeover bid from activist investor Carl Icahn, who currently owns a 33.5% stake in the company.

LIONS GATE ETMT (LGF): Free Stock Analysis Report

About Zacks Investment Research 1767 Articles

Zacks Investment Research is one of the most highly regarded firms in the investment industry. In 1978 Zacks originated the concept of utilizing earnings estimates revisions to make profitable investment decisions. Zacks offers multiple investment products and services to help investors achieve superior returns.

Visit: Zacks.com

Be the first to comment

Leave a Reply

Your email address will not be published.


*