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DreamWorks Profit Falls 72% as DVD Sales Decline

Tuesday, 28 February 2012 05:51 PM

DreamWorks Animation SKG Inc., maker of the “Kung Fu Panda” films, said fourth-quarter profit tumbled 72 percent as DVD sales declined.

Net income fell to $24.3 million, or 29 cents a share, from $85.2 million, or 99 cents, a year earlier, the Glendale, California-based company said Tuesday in a statement. Excluding items, analysts projected profit of 31 cents, the average of 13 analysts’ estimates compiled by Bloomberg.

“Kung Fu Panda 2,” one of two films DreamWorks Animation released in 2011, reached the home-video market in mid-December. Michael Pachter, an analyst at Wedbush Securities in Los Angeles, cut his profit estimate in a Feb. 24 note, citing weak holiday demand for DVDs. This month, DreamWorks Animation announced plans to develop entertainment products in China.

Fourth-quarter sales declined 21 percent to $219 million from $275.7 million a year earlier, beating analysts’ projections of $205.1 million.

DreamWorks Animation rose 2.1 percent to $19.65 at the close in New York. The shares have gained 18 percent this year.

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Tuesday, 28 February 2012 05:51 PM
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