Lions Gate and DreamWorks Under StockCall's Microscope: Movie Studios Churn out Blockbusters

Lions Gate and DreamWorks Under StockCall's Microscope: Movie Studios Churn out Blockbusters

LONDON, February 14, 2013 /PRNewswire/ --



Movie studios are constantly evolving and the latest trend is towards technologically
advanced animation techniques. New advances have greatly increased the cost factor for the
studios. While movie production companies like Lions Gate Entertainment Corp. (NYSE: LGF)
are raking in good money on the back of their successful franchise and blockbusters,
others like DreamWorks Animation SKG Inc. (NASDAQ: DWA) are languishing as they try to
curtail their costs. While overall trend in movie production sector is upbeat, there is
also excess capacity buildup. In order to reverse such excess, DreamWorks Animation
recently announced mass layoffs. StockCall has released full comprehensive research on
Lions Gate Entertainment and DreamWorks Animation and these free technical analyses can be
downloaded by signing up at



http://www.stockcall.com/technicalanalysis



Lions Gate Entertainment Reports Q3 Results



Lions Gate Entertainment is riding the wave with its spate of blockbusters. The
company reported strong numbers for its third quarter with revenue standing at $743.6
million, crushing consensus estimates of $719.5 million in revenue. Its EPS also got
better at 27 cents per share, while it was expected to report per share earnings of 20
cents. Lions Gate Entertainment capped the overall good results by reporting improvement
in its margins as well. Free technical analysis on Lions Gate Entertainment Corp.
available by signing up at



http://www.StockCall.com/LGF021413.pdf



Lions Gate Entertainment is looking to boost its margins as it is expected to grow its
fourth quarter EPS to 42 cents per share, but its revenue for the quarter is likely to
remain subdued at $701.6 million. In the past couple of quarters, Lions Gate Entertainment
capitalized on its blockbusters like Twilight franchise and The Hunger Games.



Going forward, the company would need a new catalyst to drive up its stock price.
However, it is not pinning all its hopes to big budget blockbusters. The company is
equally invested in smaller low risk productions. It also focuses on TV developments and
has had good results through popular shows like Mad Men. The diversification will help the
company in avoiding over-reliance on one model. The stock is up 23 percent so far this
year and it has come a long way from Carl Icahn's days. The stock offers a good investment
opportunity.



DreamWorks Animation Inks New Netflix Deal



DreamWorks Animation is having its share of bad and good news. The company recently
inked a deal with Netflix to develop original series for children. On the downside,
DreamWorks Animation also announced its layoff plans. The company is looking to eliminate
between 250 to 450 positions in order to cut costs. The layoff would reduce DreamWorks
Animation's workforce by 20 percent. Register today and access the free research on
DreamWorks Animation SKG Inc.at



http://www.StockCall.com/DWA021413.pdf



DreamWorks Animation is also finding it difficult to stick to its plans. The company
aimed for three films releases a year, but now it announced delaying the release of Mr.
Peabody and Sherman. DreamWorks Animation also announced suspending production of 'Me and
My Shadow'. With this rescheduling, the studio now has only 'The Croods' and "Turbo' to be
released this year. The company also reported that it would need to adjust its operating
infrastructure costs due to rescheduling. The stock tumbled following the news.



DreamWorks Animation relies on computer animated films and recent news about
rescheduling and layoffs has dented investors' confidence. The studio's financials are
also expected to suffer. However, the company garnered Hedge Fund interest as Horizon
Kinetics upped its stake in the studio. The stock is expected to remain subdued in 2013
but could pick up in 2014.



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