Earnings Update: Lions Gate Entertainment Corp. (NYSE:LGF.A) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

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Lions Gate Entertainment Corp. (NYSE:LGF.A) just released its latest first-quarter report and things are not looking great. It was a pretty negative result overall, with revenues of US$835m missing analyst predictions by 5.1%. Worse, the business reported a statutory loss of US$0.25 per share, much larger than the analysts had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Lions Gate Entertainment

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After the latest results, the nine analysts covering Lions Gate Entertainment are now predicting revenues of US$4.22b in 2025. If met, this would reflect a reasonable 6.9% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 97% to US$0.12. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$4.22b and losses of US$0.078 per share in 2025. So it's pretty clear the analysts have mixed opinions on Lions Gate Entertainment even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

The consensus price target held steady at US$11.83, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Lions Gate Entertainment analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$8.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lions Gate Entertainment shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lions Gate Entertainment's past performance and to peers in the same industry. The analysts are definitely expecting Lions Gate Entertainment's growth to accelerate, with the forecast 9.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.6% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 8.8% per year. Lions Gate Entertainment is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.