Lionsgate (LGF): Strong Beat, On Solid TV and International - Piper Jaffray

Piper Jaffray analyst, Stan Meyers, noted that Lionsgate (NYSE: LGF) beat expectations as the TV segment's contribution margin jumped to 23%, offsetting a tough box office quarter. Revenues were $791M vs consensus $739M. The Film segment reported $542M in revenues, ahead of consensus of $493M, reflecting outperformance internationally ($216M). TV reported revenues of $249M and consensus of $236M. The beat in the TV was largely related to the Orange Is The New Black deliveries and the Pilgrims acquisition. The company posted EBITDA of $46M vs consensus of $28M, largely related to the robust contribution from the TV segment.

The stock is trading up 13% in the after-market but the analyst believes further upside exists. No change to Overweight rating and $30 price target, as the company continues to deliver high quality TV content while systematically assembling a slate that can help replace the Hunger Games franchise in FY17 and beyond.

For an analyst ratings summary and ratings history on Lions Gate click here. For more ratings news on Lions Gate click here.

Shares of Lions Gate closed at $19.76 yesterday.

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