DreamWorks Animation Comfortably Beat Street’s Q1 Estimates (DWA)
DreamWorks Animation SKg Inc. (NASDAQ: DWA) reported on Tuesday that fiscal first quarter profit slumped 40%; however, shares rallied about 7% in extended trading session as the company posted surprise earnings against analysts’ expectation of loss while revenue also comfortably edged past estimation.
For the fiscal first quarter ended March 31, the Studio reported a profit of $5.6 million or 7 cents a share compared to net income of $9.1 million or 11 cents a share, in the same quarter of last fiscal.
Revenue during the period stood at $135 million compared to $136.1 million, in the same quarter of last year.
Analysts’ consensus estimate was for a loss of 3 cents a share on revenue of $99 million.
Commenting over the results, DreanWorks Animation Inc’s Chief Executive Officer Jeffrey Katzenberg said in a statement, “This year is off to an outstanding start for DreamWorks Animation. ‘The Croods’ has reached a blockbuster level of nearly $480 million at the worldwide box office and is well on its way to becoming the number one movie released during the first four months of 2013.”
Since the “The Croods” was released towards the end of the quarter, the production only fetched $4 million in revenue, the Company said in statement. However, strong results from “Rise of the Guardians”, Madagascar 3 and Europe’s Most Wanted fueled the top line growth. Besides, the last year’s acquisition of Classic Media’s library title also boosted revenue.
The first quarter results showed marked improvement over the preceding quarter’s when the Studio lost $82 billion mainly due to last year’s Rise of the Guardians’ horrible performance at the box office. The Studio took a big write-down charge, in the previous quarter.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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