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MarketFoolery

LionsGate: More Than The Hunger Games?

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 10 November 2015

⏱️ 20 minutes

🧾️ Download transcript

Summary

LionsGate Entertainment rises in advance of the final “Hunger Games” film. The Gap lowers expectations, while Wayfair sells off. Plus, Dan Boyd gives a report on the GWAR concert!

Transcript

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0:00.0

It's Tuesday, November 10th.

0:03.2

Welcome to Market Foolery.

0:04.4

I'm Chris Hill joining me in studio today

0:06.0

from Motley Fool's Supernova and Rule

0:08.2

Breakers, Aaron Bush and David Kretsman.

0:10.7

Thanks for being here guys.

0:11.7

Good to be here.

0:12.2

Yeah, thanks. We've got some earnings. We've got a

0:15.4

warning from an apparel retailer. Shocking, I know. Shocking that an apparel retailer would issue

0:21.6

a warning of some sorts.

0:24.3

And we'll go behind the glass to our man, Dan Boyd, which we rarely do, but I think given that

0:29.6

the Guar concert was last night, I think just a check in with Dan is warranted. But let's start with

0:37.0

let's start with Lionsgate Entertainment.

0:40.0

Second quarter revenue down 14% and Aaron they didn't just miss on profit they missed big on profit

0:48.3

Please explain to me why this stock is up around 4% this morning because I get that the Final Hungry Games movie is coming.

0:56.4

This is a bad quarter.

0:58.4

Yeah, it was not a good quarter.

1:00.8

So revenue and earnings both missed. A lot of their movies underperformed. I think it's important to note that one of their larger movies for the quarter, Sakario, it was actually pushed back a month. So that also kind of negatively affected it compared to what people were expecting.

1:15.8

And all of that sounds important, but I think it's important to recognize that, like yes,

1:21.1

Hunger Games movie is coming, Allegiant, which is part of the insurgent franchise is coming.

1:25.6

And those movies are much bigger than a lot of these other smaller movies even thrown together.

1:31.2

So I think that's a big part. Then also it's just

...

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