DreamWorks Animation earnings jump 73% in the second quarter
With the help of some cavemen, DreamWorks Animation delivered stronger than anticipated profits in the second quarter.
The Glendale-based company reported net income of $22.2 million, or $0.26 a share, on revenues of $213.4 million during the quarter ended June 30.
That’s well above the net income of $12.8 million, or $0.15 per share, and revenue of $162.8 million, during the same period a year ago.
The results easily exceeded the 20 cents a share estimate analysts had predicted for the company.
“DreamWorks Animation significantly outperformed in the second quarter, thanks primarily to ‘The Croods’’ incredibly successful box office run, where it has amassed $584 million worldwide to become the fifth-highest-grossing movie of the year,” said Jeffrey Katzenberg, chief executive of DreamWorks Animation.
“We also have a great deal of momentum within our television, consumer products and location-based entertainment businesses today, as DreamWorks Animation continues to diversify and evolve into a branded family entertainment company,” Katzenberg added in a statement.
“The Croods,” released March 22, has reached $186.4 million at the domestic box office and $397.5 million at the international box office for a worldwide gross of $583.9 million to date. “The Croods” contributed $71.8 million of revenue to the quarter.
“Rise of the Guardians” contributed $16.7 million of revenue to the quarter, primarily from home entertainment.
DreamWorks shares closed at $24.76, up about 2%.
The company’s shares took a hit earlier this month after the poor debut of the studio’s most recent movie, “Turbo,” . Some analysts have predicted the company could be forced to take a write-down on the movie.
Piper Jaffray analyst James Marsh said the film’s poor box office performance could result in a write-down of $30 million to $50 million.
DreamWorks took an $87-million write-down in February for the holiday movie “Rise of the Guardians.”
Doug Creutz, an analyst at Cowen & Co., said that “Turbo,” which cost $127 million to make, is unlikely to “turn a significant profit.” But he noted the film could perform better overseas and that DreamWorks is unlikely to take a write-down on the film.
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