Lions Gate Lowers Earnings Outlook

0

Shares of Lions Gate Entertainment Corp. plunged as much as 13 percent on Monday after the Santa Monica-based film producer and distributor lowered its full-year earnings outlook, citing “disappointing” performance of one of its films and other entertainment products.


Net income for the year ending March 31 is now expected to be $15 million, down from previous guidance of more than $35 million. Earnings before interest, taxes, depreciation and amortization were cut to $35 million from $63 million. Lions Gate reaffirmed its revenue prediction of more than $850 million.


Analysts had expected full-year earnings of 26 cents per share on revenues of $873.2 million.


Chief Executive Jon Feltheimer said in a statement that the recent performance of the theatrical release “In The Mix,” starring R & B; singer Usher, coupled with recent “softness” of family home entertainment product, direct-to-video releases and decreasing library margins put pressure on profitability. “In The Mix” has made just $8.7 million since it was released over the Thanksgiving holiday weekend.


Shares of Lions Gate fell 11.5 percent to settle at $8.21 on Monday.

No posts to display