Lions Gate Entertainment Corp. (NYSE:LGF.A) Just Reported, And Analysts Assigned A US$10.42 Price Target

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Lions Gate Entertainment Corp. (NYSE:LGF.A) just released its second-quarter report and things are looking bullish. Lions Gate Entertainment beat expectations with revenues of US$949m arriving 2.9% ahead of forecasts. The company also reported a statutory loss of US$0.68, 7.5% smaller than was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Lions Gate Entertainment

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NYSE:LGF.A Earnings and Revenue Growth November 16th 2024

Following last week's earnings report, Lions Gate Entertainment's eleven analysts are forecasting 2025 revenues to be US$3.94b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 62% to US$0.61. Before this latest report, the consensus had been expecting revenues of US$4.05b and US$0.54 per share in losses. 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 consensus price target fell 12% to US$10.42, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Lions Gate Entertainment, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$7.50 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Lions Gate Entertainment's growth to accelerate, with the forecast 3.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.0% per year. So it's clear that despite the acceleration in growth, Lions Gate Entertainment is expected to grow meaningfully slower than the industry average.