DreamWorks Animation SKG, Inc. (DWA) posted far better-than-expected profits and revenue during the first quarter, thanks to sales from the cartoon movie “The Croods” and over-performance in home video of the companies 2012 films. All of the company’s feature films are produced in 3D.
For the quarter, the Glendale, California-based company reported revenue of $134.6 million, compared to $136.1 million in the first quarter of 2012. Net income for the first quarter was $5.6 million, or 7 cents per share, versus 9.1 million, or 11 cents per share, in the year earlier quarter.
The results may have lagged last year, but the easily outstripped Wall Street predictions of EPS of 3 cents per share on revenue of $99 million.
"This year is off to an outstanding start for DreamWorks Animation. The Croods has reached a blockbuster level of nearly $480 million at the worldwide box office and is well on its way to becoming the number one movie released during the first four months of 2013," said Jeffrey Katzenberg, chief executive at DreamWorks.
Although it is nearing half-a-billion dollars in sales, “The Croods,” released on March 22, only contributed $4.0 million to revenue in the first quarter. This sets the stage for a large increase in revenue in the second quarter.
“Madagascar 3: Europe’s Most Wanted” contributed $22.8 million of revenue, mostly from home entertainment. “Puss in Boots” added $7.5 million to revenue, again, largely from sales at homes. “Rise of the Guardians,” which disappointed at the box office, chipped-in $9.6 million, primarily in home entertainment sales, more than the company had expected.
Television series, live theatrical performances and sales from other productions in DreamWork’s library totaled $62.3 million, while Classic Media added $27.9 million to revenue.
DreamWorks is hoping to follow the smash hit of “The Croods” with “Turbo,” an animated comedy about the journey of a snail who gains the rare gift of speed through a freak accident.
Shares of DWA closed essentially flat in Tuesday trading at $19.28, but jumped on the earnings report in extended trading, rising more than 6 percent to near $20.50. As of the closing bell on Tuesday, shares were up almost 17 percent in 2013.
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