Lionsgate roars into Q1 earnings and looking to rattle the cage longterm

Lionsgate reported their Q1 earnings ($LGF.A, $LGF.B), and pulled a fantastic upset by beating not only earnings per share estimates, but also revenue estimates. Reporting after close on August 9th, 2018, Lionsgate beat EPS estimates by $0.02, coming in at $0.18 per share. Revenue was down however year over year (more on that later), but they still brought in $932.7 million, beating estimates by $44.34 million. Quite an impressive feat.

Why Lionsgate can still be king of the jungle

2017 saw a fantastic year of movies for Lionsgate, including fan favorites like John Wick: Chapter 2, and La La Land, which on an estimated $30 million budget, brought in a worldwide gross of $445 million. Not shabby at all. $LGF also has a slate of movies that should do fairly decent at the box office, and have healthy returns based on subject matter.

Looking at a fundamental trading standpoint, Lionsgate trades at 12x Price to Earnings ratio, and a 10x free cash flow. Looking at P/E ratio multiples, and comparing it to industry peers such as Time Warner ($TWX), Walt Disney ($DIS), CBS ($CBS.A), and Cinemark ($CNK), these companies trade between 14.2x and 17.4x, and a solid estimate for $LGF.A would be a 15.8x multiple. If that 15.8x multiple would hold true, then Lionsgate has a price target of $29.30, a 27% upside based on trading end of day on 8/9/18.

Taking Lionsgate valuation and stock value a bit further, a 5 YR Discounted Cash Flow model based on revenue imparts a price target of $33.30, a 44% upside to end of market price on 8/9/18.

Buy Lionsgate, not a ticket to the zoo

Interestingly enough, Lionsgate is one of the few mid-sized companies with a strong portfolio of intellectual property, including the hit premium network Starz. Starz saw a gain of 300,000 subscribers, and television and media networks saw growth in revenue, 7% and 3% respectively.

Grab some popcorn and watch the gains

Lionsgate pays out a decent little dividend of 1.56%, equaling about $0.36 per share. Profit margin still holds at 11.5%, and that only stands to go up as the movies produced start to do better and better.

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)

Comments are closed.