Lions Gate’s (LGF) third-quarter 2010 quarterly loss of $0.55 per share was far below the Zacks Consensus Estimate of a net loss of $0.22.
The company’s net loss per share did improve from a loss of $0.84 delivered in the prior-year quarter, but it fell sharply from an earnings of $0.26 posted in the second quarter of 2010. Further, the company’s theatrical revenue has also been declining.
The home entertainment alternatives have resulted in a secular decline in movie theater attendance, which would shrink theatrical revenue industry-wide. Another factor impeding the growth is the escalating cost of motion picture production and marketing, which may jeopardize Lions Gate’s margins.Zacks Investment Research
