Lionsgate Studios (NYSE:LION) Releases Earnings Results, Beats Estimates By $0.16 EPS

Lionsgate Studios (NYSE:LION) posted its quarterly earnings results on Thursday. The company reported $0.07 EPS for the quarter, beating the consensus estimate of ($0.09) by $0.16, FiscalAI reports. The business had revenue of $668.80 million during 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 Price Performance

Shares of LION stock traded up $1.66 during trading hours on Friday, reaching $14.22. The stock had a trading volume of 12,764,503 shares, compared to its average volume of 3,574,826. Lionsgate Studios has a twelve month low of $6.47 and a twelve month high of $16.70. The firm has a 50-day simple moving average of $11.55 and a 200-day simple moving average of $11.69. The firm has a market capitalization of $4.23 billion, a PE ratio of -177.75 and a beta of 0.59.

Analyst Ratings Changes

Several research firms recently weighed in on LION. Zacks Research lowered shares of Lionsgate Studios from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 22nd. Wall Street Zen downgraded Lionsgate Studios from a “buy” rating to a “hold” rating in a research note on Sunday, November 1st. B. Riley Financial lowered their target price on Lionsgate Studios from $17.00 to $16.00 and set a “neutral” rating for the company in a report on Monday, August 10th. Citigroup initiated coverage on Lionsgate Studios in a research report on Monday, September 14th. They set a “market outperform” rating on the stock. Finally, Citizens Jmp began coverage on Lionsgate Studios in a report on Monday, September 14th. They issued a “market outperform” rating and a $18.00 price target on the stock. Eight analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $15.16.

Lionsgate Studios News Summary

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

• Positive Sentiment: Results topped forecasts: Revenue rose 41% year over year to $668.8 million, above estimates. Adjusted diluted EPS was $0.07, versus expectations for a loss, while the net loss narrowed to $15.5 million from $113 million a year earlier. Lionsgate fiscal Q2 results
• Positive Sentiment: Film and library strength: The Michael biopic, library revenue and a resurgent TV division helped lift sales. Trailing 12-month library revenue reached $1.04 billion, the company’s second-highest level ever. Lionsgate revenue boosted by Michael biopic
• Neutral Sentiment: Franchise and licensing opportunities: Lionsgate is developing an animated John Wick prequel with Keanu Reeves returning, and is targeting a roughly $50 million global products-and-experiences revenue run rate by fiscal 2028. These initiatives could broaden future monetization, but are forward-looking. John Wick animated prequel Products and experiences revenue target
• Negative Sentiment: GAAP profitability remains a concern: Despite the improvement, Lionsgate still reported a net loss from continuing operations, so sustained earnings growth remains important. Lionsgate fiscal Q2 results

Institutional Investors Weigh In On Lionsgate Studios

Several large investors have recently made changes to their positions in LION. Moors & Cabot Inc. increased its position in Lionsgate Studios by 8.7% in the 3rd quarter. Moors & Cabot Inc. now owns 21,938 shares of the company’s stock valued at $246,000 after acquiring an additional 1,750 shares during the period. Trace Wealth Advisors LLC bought a new stake in Lionsgate Studios during the 3rd quarter valued at $326,000. VIRGINIA RETIREMENT SYSTEMS ET Al raised its stake in Lionsgate Studios by 823.1% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 123,700 shares of the company’s stock valued at $1,385,000 after acquiring an additional 110,300 shares in the last quarter. Sterling Capital Management LLC boosted its position in Lionsgate Studios by 847.4% during the 3rd quarter. Sterling Capital Management LLC now owns 6,622 shares of the company’s stock worth $74,000 after acquiring an additional 5,923 shares during the period. Finally, Robeco Institutional Asset Management B.V. acquired a new position in Lionsgate Studios during the 3rd quarter worth $328,000.

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.