Lionsgate’s stock is down 5.7% in initial postmarket trading, to what would be a new 52-week low, after the studio reported fiscal Q3 earnings that fell short of Wall Street’s expectations.
Part of the problem: The Hunger Games: Mockingjay, Part 2‘s $650 million global box office was down from Mockingjay 1, despite costing more to produce. Movie expenses also were higher, with four wide film releases in calendar Q4 vs two in the last three months of 2014.
“While the performance of our theatrical film slate resulted in softer than anticipated results, our other businesses performed strongly in the quarter,” CEO Jon Feltheimer says. “With our television business continuing its robust topline and margin growth, a deeper and more diversified film slate with lower costs and contributions anticipated from recently launched businesses, we have a clear path to resume our strong and sustainable financial trajectory in fiscal 2017.”
As for fiscal Q3, Lionsgate reported net income of $40.7 million, down 58.5% vs the period in 2014, on revenues of $670.5 million, down 10.8%. Analysts thought that the revenue number would come in at $767.4 million. Earnings at 26 cents a share also were far below expectations for 49 cents.
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