Yahoo Finance Lions Gate Entertainment Corp. (NYSE:LGF.A) Yearly Results: Here's What Analysts Are Forecasting For This Year
It's been a sad week for Lions Gate Entertainment Corp. (NYSE:LGF.A), who've watched their investment drop 14% to US$9.19 in the week since the company reported its full-year result. The results overall were pretty much dead in line with analyst forecasts; revenues were US$4.0b and statutory losses were US$4.77 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Lions Gate Entertainment
Taking into account the latest results, the current consensus from Lions Gate Entertainment's six analysts is for revenues of US$4.26b in 2025. This would reflect an okay 6.0% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 97% to US$0.16. Before this earnings announcement, the analysts had been modelling revenues of US$4.46b and losses of US$0.11 per share in 2025. So it's pretty clear the analysts have mixed opinions on Lions Gate Entertainment after this update; revenues were downgraded and per-share losses expected to increase.
The average price target was broadly unchanged at US$11.65, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Lions Gate Entertainment at US$15.00 per share, while the most bearish prices it at US$9.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Lions Gate Entertainment's growth to accelerate, with the forecast 6.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.5% annually. So it's clear that despite the acceleration in growth, Lions Gate Entertainment is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Lions Gate Entertainment. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Lions Gate Entertainment going out to 2027, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Lions Gate Entertainment (at least 1 which can't be ignored) , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
