Lions Gate Entertainment Corp., the independent film studio that produced “The Hunger Games,” posted a quarterly profit that beat analysts’ estimates, aided by home-video sales of the young-adult thriller.
Profit for fiscal second quarter was $75.5 million, or 53 cents a share, compared with a net loss of $25.3 million, or 19 cents a share, a year earlier. That beat the $12.4 million average estimate of analysts, according to data compiled by Bloomberg. The shares rose 10 percent in extended trading.
“We’re clearly on track to meet or exceed our expectations this year,” Chief Executive Officer Jon Feltheimer said in the statement, citing “significant contributions” from the video release of the first film of “The Hunger Games” series.
Lions Gate is positioning itself as a major supplier of novel-based films catering to teenagers and young adults. The studio will release the final movie in the “Twilight” vampire romance series on Nov. 16 and is developing films based on popular books including “Ender’s Game,” “Chaos Walking” and “Divergent.”
The shares climbed as high as $16 in extended trading Thursday. The stock had fallen 3.2 percent to $14.60 at the close in New York to give a gain of 75 percent this year.
Sales almost doubled in the quarter to $707 million, ahead of analysts’ estimates of $623.4 million, the company, based in Vancouver and run from Santa Monica, California, said today in a statement distributed by PR Newswire.
Lions Gate acquired the “Twilight” finale through the acquisition in January of closely held Summit Entertainment for $412.5 million.
© Copyright 2014 Bloomberg News. All rights reserved.