DreamWorks beats 2nd quarter estimates on strong showing from ‘Kung Fu Panda,’ ‘Madagascar 2′By AP
Tuesday, July 28, 2009
DreamWorks beats 2Q expectations on 2008 films
GLENDALE, Calif. — DreamWorks Animation SKG Inc. on Tuesday reported second-quarter earnings that blew past Wall Street forecasts on the strength of last year’s films.
The company said domestic pay TV revenues for “Kung Fu Panda” and international DVD sales of “Madagascar: Escape 2 Africa” bolstered results.
DreamWorks earned $26 million, or 30 cents per share, in the three months through June, down slightly from $27 million, or 30 cents per share, a year ago.
Revenue fell 7 percent to $132 million.
Analysts polled by Thomson Reuters expected DreamWorks Animation to see revenue of $117 million, with earnings of 16 cents per share.
“Monsters vs. Aliens,” the company’s sole release this year, contributed just $10 million in the quarter, mainly because of a video game agreement with Activision Blizzard Inc.
The company said the 3-D movie has grossed $377 million worldwide since its release in late March.
DreamWorks said its third-quarter results would be driven mainly by the DVD and Blu-ray sales of “Monsters” and revenue from “Madagascar 2″ on domestic pay TV.
DreamWorks Animation was spun off from the privately held live-action studio headed by Steven Spielberg, DreamWorks SKG Inc., in a public stock offering in 2004.
Shares rose 18 cents to close at $28.68 Tuesday before the results were announced.
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