Lionsgate Studios (NYSE:LION) Issues Earnings Results

by · The Markets Daily

Lionsgate Studios (NYSE:LION – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.16, FiscalAI reports. The company had revenue of $668.80 million for the quarter.

Here are the key takeaways from Lionsgate Studios’ conference call:

  • Quarterly results improved sharply: Revenue rose 41% year over year to $669 million, adjusted OIBDA reached $72 million, and studio segment profit more than doubled to $110 million. The company reported a diluted loss per share of $0.05, but adjusted diluted EPS was $0.07.
  • Management reiterated its growth outlook for fiscal 2027 and said it sees continued growth in fiscal 2028 and 2029, citing upcoming film releases, higher TV deliveries, and library performance. Executives pointed to encouraging early indicators for The Hunger Games: Sunrise on the Reaping, while noting that the film’s box office results are not yet known.
  • Library monetization remains a major earnings driver: Trailing 12-month library revenue was about $1.04 billion, with roughly 60% cash flow margins. The company said its global channels business has tripled annual revenue to more than $100 million in two years, alongside expansion of FAST channels and international SVOD add-on channels.
  • Leverage improved, but debt and investment spending remain important considerations: Net debt was about $1.5 billion and leverage fell to 3.7x from 4.3x, with $359 million in cash and $800 million of revolver availability. Management expects positive trailing 12-month free cash flow and leverage below 3x by 2029, but said content spending is weighted toward the second half of this fiscal year.
  • The company is extending franchises beyond film and TV through stage productions, tours, live experiences, and video games. Management is targeting a roughly $50 million revenue run rate and more than $30 million in contribution from these activities by the end of 2028.

Lionsgate Studios Stock Performance

NYSE LION traded down $0.18 during trading hours on Thursday, reaching $12.54. The company’s stock had a trading volume of 2,666,902 shares, compared to its average volume of 3,504,850. The business has a 50-day simple moving average of $11.49 and a 200 day simple moving average of $11.66. Lionsgate Studios has a 52 week low of $6.47 and a 52 week high of $16.70.

Lionsgate Studios News Roundup

Here are the key news stories impacting Lionsgate Studios this week:

  • Positive Sentiment: Fiscal Q2 revenue rose 41% year over year to $668.8 million, above estimates. Adjusted diluted earnings were $0.07 per share, versus a Zacks consensus forecast for a loss, while the continuing-operations net loss narrowed to $15.5 million from $113 million a year earlier. Operating income was $29.1 million and adjusted OIBDA was $72 million. Read More. · Read More.
  • Positive Sentiment: Film, television and library revenue contributed to the growth. Trailing 12-month library revenue reached $1.04 billion, the company’s second-highest level ever—supporting the value of its content catalog. Read More.
  • Positive Sentiment: The franchise pipeline gained attention: Lionsgate is developing an animated John Wick prequel with Keanu Reeves returning, and a live-action Naruto movie was reported as greenlit with Sony involved. These projects could extend the reach of established properties, though their eventual financial contribution is uncertain. Read More. · Read More.
  • Neutral Sentiment: Coverage mentioned ongoing takeover speculation around Lionsgate Studios, but the articles provided did not report a new offer or transaction, so it is not a confirmed near-term catalyst.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. assumed coverage on shares of Lionsgate Studios in a research note on Friday, September 25th. They issued an “underweight” rating and a $9.00 target price on the stock. Zacks Research cut shares of Lionsgate Studios from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 22nd. B. Riley Financial decreased their price target on Lionsgate Studios from $17.00 to $16.00 and set a “neutral” rating for the company in a research note on Monday, August 10th. Wall Street Zen downgraded Lionsgate Studios from a “buy” rating to a “hold” rating in a research note on Sunday. Finally, Seaport Research Partners reissued a “buy” rating and issued a $17.00 price objective on shares of Lionsgate Studios in a report on Friday, August 7th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $15.16.

View Our Latest Report on Lionsgate Studios

Hedge Funds Weigh In On Lionsgate Studios

Several hedge funds and other institutional investors have recently modified their holdings of the company. Nykredit A S acquired a new position in Lionsgate Studios during the 2nd quarter valued at about $49,000. Sterling Capital Management LLC boosted its stake in Lionsgate Studios by 847.4% during the 3rd quarter. Sterling Capital Management LLC now owns 6,622 shares of the company’s stock valued at $74,000 after purchasing an additional 5,923 shares in the last quarter. Lido Advisors LLC bought a new stake in shares of Lionsgate Studios in the 1st quarter worth $112,000. Praxis Investment Management Inc. acquired a new stake in shares of Lionsgate Studios in the first quarter valued at $117,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in shares of Lionsgate Studios in the second quarter valued at $118,000.

About Lionsgate Studios

(Get Free Report)

Lionsgate Studios (NYSE:LION) is a global entertainment company focused on the development, production and distribution of motion pictures and television programming. Its operations include theatrical film releases, home entertainment, television licensing and distribution, and the sale of content to streaming platforms and other media outlets.

The company’s film business includes established franchises such as The Hunger Games, John Wick, Twilight, Saw and Now You See Me, along with original feature films.

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