Yahoo Finance Lionsgate (LGF.A) Collaborates With Canada's Cineplex Pictures
Lionsgate (LGF.A) recently announced that it has collaborated with Canada’s Cineplex Pictures to bring its theatrical releases to over 160 Canadian cinemas.
The deal counts 11 titles of Lionsgate that are scheduled to release in 2023. Starting with Gerard Butler’s Plane on Jan 13, the slate includes Jesus Revolution starring Kelsey Grammer and John Wick: Chapter 4 starring Keanu Reeves.
Along with these, Are You There God? It’s Me, Margaret, About My Father, The Blackening, the untitled Adele Lim comedy, White Bird: A Wonder Story, The Expendables 4, the next installment of the billion-dollar box office Saw franchise and The Hunger Games: The Ballad of Songbirds and Snakes are also lined up.
The partnership is expected to provide Lionsgate with a wider audience in Canada and thus aid its top line.
Lionsgate to Face Headwinds Despite Expansions
With covid restrictions being lifted, and the footfalls at movie multiplexes reviving, Lionsgate has been making great efforts to expand its presence globally and cater to a larger audience.
Recently it teamed up with a renowned multiplex in India, PVR Cinemas, to release its Hollywood slate in the country. This emerging economy has been witnessing a shift in customer preferences toward Hollywood movies and hence aims to benefit from it.
What could be attributing this expansion is Lionsgate’s decision of spinning off its studio from Starz, its cable network company. This was primarily done to allow Lionsgate to invest its monetary resources and time to focus on individual businesses and bolster its growth.
Lions Gate Entertainment Corp. Price and Consensus
Lions Gate Entertainment Corp. price-consensus-chart | Lions Gate Entertainment Corp. Quote
However, a major headwind that Lionsgate is facing and will continue to face is from the streaming industries that are capturing the markets as people are gradually shifting their preferences toward watching movies online in their comfort. Per The Business Research Company, the global content streaming market size will grow from $121.75 billion in 2022 to $138.60 billion in 2023 at a compound annual growth rate of 13.8%.
The anticipated recession in 2023 might also have a deteriorating impact on sales of movie tickets due to compromised disposable income. This could further shake revenues at Lionsgate.
Shares of Lionsgate have declined 61.2% in the last year compared with the Zacks Consumer Discretionary sector, which fell 31.9% in the same period.
Zacks Rank & Stocks to Consider
Lionsgate currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector are Liberty Media FWONK, Royal Caribbean Cruises RCL and Liberty Global LBTYA, each sporting a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 2.6% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
Shares of Royal Caribbean Cruises are down 31.5% year over year. The earnings estimate is pegged at a loss of $1.34, which has been constant over the past 30 days.
Liberty Global’s share are down 25.3% year over year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
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