Tags: DreamWorks | Profit | Dragon | Release

DreamWorks Profit Gets a Lift from 'Dragon' Release

Wednesday, 29 Oct 2014 06:02 PM

Dreamworks Animation SKG Inc., the independent film studio, posted third-quarter profit that beat analysts’ estimates, benefiting from box-office sales of “How to Train Your Dragon 2.”

Profit rose to 14 cents a share, the company said Wednesday in a statement. Analysts had predicted 6 cents, the average of 12 estimates compiled by Bloomberg. A one-time gain contributed $4.9 million to profit before taxes. Revenue grew 17 percent to $180.9 million, missing views of $184.4 million.

Some analysts increased their profit estimates after a better-than-expected international performance from “How To Train Your Dragon 2,” the studio’s most recent release. The company has made efforts to diversify its revenue away from the hit or miss business of films and reduce costs.

“Near-term stock performance is likely to hinge on the performance of ‘The Penguins of Madagascar,’” to be released on Nov. 26, Barton Crockett, analyst at FBR Capital Markets, wrote in a note before results were out. He has a neutral rating on the stock.

DreamWorks Animation shares rose 5.5 percent to $24.57 in extended trading after the announcement, after falling 1.9 percent during the regular New York session to close at $23.29.

DreamWorks Animation has been hobbled by losses on films that failed to generate sufficient box-office revenue. The company most recently took a charge for “Mr. Peabody & Sherman.”

The company, led by co-founder Jeffrey Katzenberg, disclosed on its last earnings call that it was subject of a regulatory investigation into the film write-off for ’’Turbo.’’

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Dreamworks Animation SKG Inc., the independent film studio, posted third-quarter profit that beat analysts' estimates, benefiting from box-office sales of "How to Train Your Dragon 2."Profit rose to 14 cents a share, the company said Wednesday in a statement. Analysts had...
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2014-02-29
Wednesday, 29 Oct 2014 06:02 PM
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