Lionsgate Studios (NYSE:LION) Issues Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Lionsgate Studios (NYSE:LION) posted its quarterly earnings data on Thursday. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.16, FiscalAI reports. The firm 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

Shares of NYSE:LION traded up $1.21 during midday trading on Friday, hitting $13.77. 4,869,290 shares of the stock were exchanged, compared to its average volume of 3,066,532. The stock has a market capitalization of $4.10 billion, a price-to-earnings ratio of -32.79 and a beta of 0.59. The business’s 50-day moving average price is $11.49 and its 200 day moving average price is $11.66. Lionsgate Studios has a 12 month low of $6.47 and a 12 month high of $16.70.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on LION shares. Seaport Research Partners reissued a “buy” rating and set a $17.00 price target on shares of Lionsgate Studios in a research report on Friday, August 7th. Citigroup initiated coverage on shares of Lionsgate Studios in a research report on Monday, September 14th. They issued a “market outperform” rating for the company. JPMorgan Chase & Co. assumed coverage on Lionsgate Studios in a report on Friday, September 25th. They issued an “underweight” rating and a $9.00 target price on the stock. Morgan Stanley reiterated an “overweight” rating and issued a $15.00 target price on shares of Lionsgate Studios in a research report on Thursday, August 6th. Finally, Wall Street Zen downgraded shares of Lionsgate Studios from a “buy” rating to a “hold” rating in a research note on Sunday, November 1st. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $15.16.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Lionsgate Studios in the second quarter worth approximately $251,521,000. Wellington Management Group LLP acquired a new stake in Lionsgate Studios during the 2nd quarter valued at approximately $113,683,000. Jefferies Financial Group Inc. acquired a new stake in Lionsgate Studios during the 2nd quarter valued at approximately $88,896,000. Coastal Bridge Advisors LLC acquired a new stake in Lionsgate Studios during the 2nd quarter valued at approximately $83,144,000. Finally, Cooper Creek Partners Management LLC acquired a new stake in Lionsgate Studios during the 1st quarter valued at approximately $43,715,000.

Key Headlines Impacting Lionsgate Studios

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

• Positive Sentiment: Quarterly results beat expectations: Revenue rose 41% year over year to $668.8 million, topping estimates of about $629 million. Adjusted earnings were $0.07 per share, versus analysts’ expected loss, while the net loss narrowed substantially from a year earlier. Lionsgate fiscal second-quarter results
• Positive Sentiment: Film and library strength supported growth: The “Michael” biopic helped lift revenue, alongside gains in television and library sales. Trailing 12-month library revenue reached $1.04 billion, the company’s second-highest level on record. Lionsgate revenue boosted by Michael biopic
• Positive Sentiment: Franchise plans offer additional monetization potential: Lionsgate is developing an animated “John Wick” prequel with Keanu Reeves returning, and has set a goal of reaching roughly $50 million in annualized global products-and-experiences revenue by the end of fiscal 2028. John Wick animated prequel
• Neutral Sentiment: Profitability remains a consideration: Despite the improvement, Lionsgate reported a $15.5 million net loss from continuing operations, so sustaining revenue growth and converting it into consistent GAAP profits remain important. Lionsgate fiscal second-quarter results

About Lionsgate Studios

Lionsgate Studios is a film and television production and distribution company whose operations include Lionsgate’s motion picture and television studio businesses. Its activities span developing, producing, marketing and distributing films and television programs, as well as licensing content to platforms and broadcasters.

The company’s portfolio includes well-known franchises such as The Hunger Games, John Wick and Saw, along with a broad library of film and television titles.