Back to top

Image: Bigstock

Lionsgate (LGF.A) Q3 Earnings Lag Estimates, Revenues Rise Y/Y

Read MoreHide Full Article

Lionsgate (LGF.A - Free Report) reported adjusted earnings of 2 cents per share for the third quarter of fiscal 2022 that lagged the Zacks Consensus Estimate by 90.48%. The figure declined 90.5% year over year.

Revenues increased 5.9% year over year to $885.4 million but lagged the consensus mark by 10.71%.

Segment Details

Motion Picture (31.1% of revenues) revenues increased 10% year over year to $275.3 million. The segment generated a profit of $67.5 million, up 24.5% year over year.

Television Production (49.5% of revenues) revenues surged 92.2% year over year to $438.6 million. Segmental profit was $19.3 million, which declined 34.6% year over year.

Media Networks’ segment (43.9% of revenues) reported revenues of $388.9 million, down 4.3% year over year. Segmental profit decreased 65.1% to $28.5 million.

Starz Networks’ revenues decreased 3.4% year over year to $362.5 million.

STARZPLAY International revenues in the quarter surged 49.2% year over year to $26.4 million.

Media Networks’ global subscribers reached 31.4 million, including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust domestic and international streaming subscriber growth.

Global streaming subscribers increased 44% year over year to 19.7 million. STARZPLAY International subscribers grew 98% year over year to 8.5million.

Operating Details

Lionsgate’s adjusted OIBDA declined 31.5% year over year to $91.6 million in the reported quarter.

Direct operating expenses, as a percentage of revenues, expanded 360 basis points (bps) on a year-over-year basis to 58.5%.

Distribution and marketing expenses, as a percentage of revenues, expanded 140 bps on a year-over-year basis to 22.5%.

Moreover, general & administrative expenses, as a percentage of revenues, decreased 110 bps year over year to 12.7%.

Operating income was $9.3 million in the reported quarter, down 74.9% year over year.

Balance Sheet & Cash Flow

As of Dec 31, 2021, Lionsgate had cash and cash equivalents of $314.4 million compared with $442.6 million as of Sep 30, 2021.

Net cash outflow from operating activities was $157.3 million at the end of the fiscal third quarter compared with $16.1 million of cash inflow at the end of the previous quarter.

Adjusted free cash outflow was $23 million against a free cash inflow of $195.2 million in the previous quarter.

Zacks Rank & Stocks to Consider

Currently, Lionsgate carries a Zacks Rank #5 (Strong Sell).

Lionsgate’s shares have returned 1.5% against the Zacks Consumer Discretionary sector’s decline of 19.4% in the past year.

Rocky Brands (RCKY - Free Report) , JAKKS Pacific (JAKK - Free Report) and Wolverine World Wide (WWW - Free Report) are some better-ranked stocks in the broader Consumer & Discretionary sector. Rocky Brands and Jakks Pacific sport a Zacks Rank #1 (Strong Buy) while Wolverine World Wide carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rocky Brands’ shares have returned 12.7% against the Zacks Consumer Discretionary sector’s decrease in the past year.

RCKY is scheduled to report fourth-quarter 2021 results on Feb 23, 2022.

Jakks Pacific’s shares have returned 6.4% in the past year.

JAKK is slated to report fourth-quarter 2021 results on Feb 17, 2022.

Wolverine World Wide’s shares have slumped 18% in the past year.

WWW is scheduled to report fourth-quarter 2021 results on Feb 24, 2022.

 

Published in