Hunger Games Lifts Lionsgate
Demonstrating how a single blockbuster film can alter the fortunes of a movie studio, shares in Lions Gate Entertainment soared nearly 14 percent in midday trading today (Friday), largely due to video sales of The Hunger Games during its second quarter. Profit for the quarter was $75.5 million versus a net loss of $25.3 million a year earlier. We're clearly on track to meet or exceed our expectations this year, CEO Jon Feltheimer said in a statement. Lionsgate, which acquired Summit Entertainment in January, will be releasing Twilight: Breaking Dawn -- Part 2 later this month. In an interview with Bloomberg News, Wunderlich Securities analyst Matthew Harrigan praised the company for its current focus on developing franchises. They've been on a roll creatively for a while now and this is the first quarter you can see that flowing into the financials, Harrigan said.