DreamWorks Animation posted a loss of $3.5 million in the third quarter due to restructuring charges, but the studio saw a sharp increase in revenues thanks to its latest animated movie, “Home,” and growth in its television business.
The Glendale-based studio on Thursday said it lost 4 cents a share during the three months ended Sept. 30, compared with a profit of 14 cents a share during the same period a year ago. The loss, however, was driven by costs associated with layoffs earlier this year, when the company shed hundreds of jobs following several box office flops.
Excluding those restructuring charges, the company reported net income of $1.4 million, or 2 cents a share, during the quarter. Revenues during the same period climbed 43% to $259.2 million, the company said.
DreamWorks got a boost from home video sales of “Home,” brisk consumer product sales -- which more than doubled in the quarter -- and higher revenue from television series, which generated $50.7 million in the third quarter, up from $14.3 million a year ago.
“While we still have considerable work ahead of us, I am proud of the team’s collective efforts and remain confident that we are well-positioned to meet or even exceed our stated goals for the year while continuing to drive long-term value for our stakeholders,” DreamWorks Animation Chief Executive Jeffrey Katzenberg said in a statement.
In a conference call with analysts, DreamWorks executives were bullish about the outlook for this year. They said they now expect the studio will earn $30 million this year. Previously, DreamWorks had projected it would break even in 2015.
Investors cheered the results, which easily exceeded Wall Street’s estimates. Analysts had projected a loss of 13 cents a share, or 5 cents a share on an adjusted basis.
Shares, which closed at $20.21, jumped 11% in after-hours trading.