Reported 6 months ago
Despite Lions Gate Entertainment's fourth-quarter earnings report beating expectations in both revenue and income, the company's stock is trading lower as it prepares for a restructuring to separate its studios and Stars businesses. The company is looking to build on its solid finish to fiscal 2024 with the spin-off of a pure-play content company. The separation is expected to be completed by the end of the year, but uncertainty remains on creating separate equity for Stars. Shares are declining possibly due to confusion surrounding the company's future post-restructuring. In contrast, Petco's shares are rising after posting better-than-expected first-quarter results and expecting to be free cash flow positive in fiscal 2024, despite a relatively high short interest.
Source: YAHOO