DreamWorks Animation's earnings fell 59% in the third quarter compared with the same period a year, the company reported Tuesday, but the results were still well ahead of what analysts had predicted.
The Glendale-based creator of the "Shrek" and "Kung Fu Panda" movies reported earnings of $10.1 million, or 12 cents a share, on revenues of $154.5 million in the three months ended Sept. 30.
That compared with a earnings of $24.4 million, or 29 cents a share, on revenues of $186.3 million during the same quarter a year ago, the company said.
Nonetheless, the earnings and revenue estimates were well ahead of what most analysts had predicted for the studio.
"Strength in our feature film segment is the single largest driver of our positive third-quarter earnings," DreamWorks Animation Chief Executive Jeffrey Katzenberg said. "It also continues to propel new areas of growth for DreamWorks Animation as we have now transitioned into a global, diversified family entertainment company."
The results reflected the weak performance of the studio's latest animated movie, "Turbo," which was released July 17 nd has grossed $246.2 million to date. "Turbo," which cost $127 million to make, contributed feature film revenue of $6.4 million to the third quarter.
Still, Katzenberg told analysts he still expects the movie to make a profit, helped in part by an original kids series called "Turbo: F.A.S.T." that will debut on Netflix in December.
Film revenues from a year ago also were higher because of the hit movie "Madagascar 3: Europe's Most Wanted," which was released in June.
Overall, the feature film segment contributed revenue of $120.7 million and gross profit of $55.4 million to the third quarter, DreamWorks said. "The Croods," which was released on March 22, has generated $587 million in worldwide ticket sales, making it the sixth-highest-grossing film of the year on a global basis. "The Croods" contributed feature film revenue of $4 million to the quarter.
The company's consumer products segment contributed revenue of $12 million and gross profit of $3 million to the third quarter, primarily from "Turbo" and titles from the Classic Media library.
Costs of revenue for the quarter equaled $91.7 million. Selling, general and administrative expenses totaled $47.7 million, including $4.5 million of stock-based compensation expense, the studio said.
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