DreamWorks Animation earnings jump 73% in the second quarter

DreamWorks Animation fared poorly with its recent debut of "Turbo," but the company's second quarter profits exceeded expectations.
(DreamWorks Animation)

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.


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“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.


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“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,” which brought in just $21.5 million over its first weekend in release. 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.


DreamWorks Animation stock falls on possible ‘Turbo’ write-down


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