Shares in Lions Gate Entertainment Corp. came under heavy selling pressure in the post market after the film and television producer reported a $22.7-million (U.S.) loss in its latest quarter.
The stock was down 6.3 per cent at $12.04 in extended trading after closing down 0.4 per cent at $12.85 in the regular session. Investors focused on higher marketing and acquisition costs even as revenues soared higher than expected thanks to some recent box office successes. Lions Gate in January completed a $412.5-million acquisition of Summit Entertainment and it now has control over two of the most successful franchises aimed at young people: Twilight and The Hunger Games.
Elsewhere in the post market, TiVo shares were also lower, down about 4 per cent, after the company forecast a second-quarter net loss of $28-million to $30-million. That’s a fair chunk of change worse than analyst forecasts for a loss of about $16-million. It already swung to a loss of 17 cents a share in the first quarter.
Facebook shares, meanwhile, were slightly weaker in the post market, off 0.3 per cent at $28.09 after closing the session down 2.25 per cent at $28.19. A few buyers were nibbling at Research In Motion stock; it was up a penny to $10.36 in extended trading after its hefty 7.8 per cent drop in the regular session.
It’ll be a busy day filled with some key banking earnings here and economic data from across the globe that could influence markets.
Among overseas reports to watch out for will be euro zone inflation data for May and Switzerland’s first-quarter GDP numbers. Economists believe Switzerland could possibly show the first contraction in three years as exports sink, given the high level of the currency. India will also be reporting its GDP.
The U.S. will releases its first-quarter GDP report at 8:30 a.m. (ET). Economists believe GDP growth slowed in the three-month period amid a drop in government spending. The consensus estimate is for growth of 1.9 per cent, down from 2.2 per cent in the fourth quarter.
The U.S. Labour Department reports on initial jobless claims for the week ended May 26. Economists expect 370,000 new claims. That will be released at 8:30 a.m., just after the U.S. ADP employment report is released at 8:15 a.m.
Canada will be reporting on its current account balance in the first quarter. Economists expect a deficit of $10.8-billion (Canadian).
Canadian Imperial Bank of Commerce and National Bank of Canada will wrap up the earnings season for the big banks in the pre-market. Analysts are looking for per-share profits to come in at $1.88 and $1.85, respectively.