Tags: DreamWorks | Animation | Revenue | Short

DreamWorks Animation Revenue Falls Short

Tuesday, 25 Feb 2014 06:04 PM

DreamWorks Animation SKG Inc., the independent animation studio, posted fourth-quarter revenue that missed analysts’ estimates after home-video sales of “Turbo” fell short.

Net income totaled $17.2 million, or 20 cents a share, the Glendale, California-based entertainment company said Tuesday in a statement. DreamWorks Animation posted a loss a year earlier after writing down “Rise of the Guardians.” Sales fell 23 percent to $204.3 million, missing analysts’ projections of $223.2 million, the average of nine estimates.

DreamWorks Animation, led by Chief Executive Officer Jeffrey Katzenberg, is looking beyond film and television to publishing and tourism for future growth. This month, the company announced the formation of DreamWorks Press and a collaboration with Merlin Entertainments Plc of the U.K. for attractions based on characters from “Shrek.”

The company’s newest release, “Mr. Peabody & Sherman,” opens in theaters on March 7.

Fourth-quarter results included an impairment charge of $13.5 million, or 12 cents a share, related to the performance of “Turbo,” which was released in theaters in July.

On Oct. 29, Katzenberg said on DreamWorks Animation’s third-quarter conference call that he expected “Turbo” to be profitable.

Other Charges

“Based on the information we have today we believe ‘‘Turbo is a profitable movie,’’ he said then. The film was released in the home-video market on Nov. 12.

DreamWorks Animation also reported additional charges of $6.7 million, or 6 cents, related to other content, and a gain of 5 cents from the sale of an app the company developed.

Analysts had expected profit of 32 cents a share, the average of 10 estimates compiled by Bloomberg.

In last year’s fourth quarter, DreamWorks Animation posted a net loss of $82.7 million, or 98 cents a share, following the lackluster performance of ‘‘Rise of the Guardians’’ in theaters.

DreamWorks Animation shares fell 7.8 percent to $32.45 in extended trading Tuesday, after rising 1 percent during regular trading in New York. The stock has declined 0.8 percent this year.

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DreamWorks Animation SKG Inc., the independent animation studio, posted fourth-quarter revenue that missed analysts' estimates after home-video sales of "Turbo" fell short.
DreamWorks,Animation,Revenue,Short
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2014-04-25
Tuesday, 25 Feb 2014 06:04 PM
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