Can LGF.A sustain its earnings growth into Q4 2025?

**Lions Gate Entertainment (LGF.A) is poised to sustain its earnings growth into Q4 2025**, based on several key indicators and strategic developments:

1. **Consistent Revenue Growth**: Lions Gate has demonstrated a consistent increase in revenue, with a year-over-year growth of 2.5% anticipated for the upcoming quarter. This trend, combined with a notable 22% increase in the trailing 12-month library revenue, suggests a strong business foundation.
2. **Earnings Performance**: Although Lions Gate reported a net loss of $21.9 million and an earnings per share (EPS) of -$0.09 for Q3 FY2025, it achieved an adjusted net income of $68.4 million, reflecting a $0.28 gain per share. The company's diluted EPS grew by 80%, indicating a robust profitability trend.

3. **Analyst Optimism**: The average analyst price target for Lions Gate is $11, with a consensus rating of "Buy", suggesting that analysts are optimistic about the company's future performance. This sentiment is reinforced by J.P. Morgan's recent upgrade, where the price target was increased to $9, reflecting confidence in Lions Gate's growth prospects.

4. **Strategic Developments**: The upcoming separation of Lions Gate's Starz and Lionsgate Studio businesses into two separate public companies is expected to create value and improve the investment structure. This strategic move, coupled with a new Amazon agreement, is likely to drive better theatrical performance and support revenue growth.
5. **Financial Forecasts**: Analysts forecast that Lions Gate will report quarterly earnings of $0.12 per share for Q4 2025, which, although representing a decline from the previous year, is still positive and suggests a sustainable growth trajectory. Additionally, the consensus EPS estimate for the quarter has been revised significantly, indicating a potential upward surprise.
6. **Market Position**: Lions Gate's dominant position in the global entertainment sector, with a focus on motion picture and television production, distribution, and premium subscription platforms like STARZ, positions it well for continued growth. The company's ability to adapt to market challenges and capitalize on strategic opportunities supports the argument for sustained earnings growth.

In conclusion, while Lions Gate has faced some challenges, particularly in the motion picture segment, the company's strong revenue growth, positive earnings trajectory, analyst optimism, and strategic developments suggest that it is well-positioned to sustain its earnings growth into Q4 2025.