Shares of Lions Gate rally after surprise profit, steady outlook despite strikes

Shares of Lions Gate Entertainment Corp. (LGF.A) jumped 10.3% after hours on Thursday after the TV, film and media giant reported a surprise second-quarter profit and stuck with its full-year outlook "even with the negative impact of the strike" by Hollywood's writers and actors earlier this year. The company reported a net loss of $887.9 million, or $3.79 a share, compared with a loss of $1.81 billion, or $7.95 a share, in the same quarter last year. Revenue rose to $1.02 billion from $875.2 million in the prior-year quarter. Adjusted earnings per share were 21 cents. Analysts polled by FactSet expected an adjusted per-share loss of 5 cents on revenue of $1.01 billion. Studio and film revenues jumped, helped by "home entertainment" consumption of films like "John Wick: Chapter Four," while TV production revenues fell 9%, as the strikes halted production. Domestic streaming revenue also grew. Both Hollywood's writers and actors have since reached deals with studios.

-Bill Peters

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11-09-23 1633ET

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