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DreamWorks Animation beats 3Q income estimates

DreamWorks Animation beats 3Q income estimates

DreamWorks Animation SKG Inc. shot past analyst estimates in releasing third-quarter earnings Tuesday, saying its only release this year, "Monsters vs. Aliens," is off to a strong start in the home video market.
Analysts are watching for clues as to how the beleaguered home video market is faring amid the recession.
U.S. sales of packaged discs, including DVDs and Blu-ray discs, have fallen nearly 14 percent industrywide in the quarter.
"Monsters vs. Aliens" hit stores Sept. 29, meaning only part of the disc sales made it into results for the July-September quarter. The company said the movie contributed $33.4 million in revenue and sold 4.6 million units, slightly above one analyst's forecast.
Overall, net income fell 48 percent to $19.6 million, or 23 cents per share. Revenue fell 11 percent to $135.4 million. That still beat analysts' estimates of 16 cents per share on revenue of $129 million, according to a survey by Thomson Reuters.
The company's small number of releases means that big swings in quarterly earnings from year to year are common.
DreamWorks also said it lost 5 cents per share in profit from its stage production, "Shrek the Musical," which the company recently announced would be ending its run on Broadway on Jan. 3, earlier than anticipated.
But the show will begin touring next summer, starting in Chicago, and Chief Financial Officer Lew Coleman said he expects the show will eventually be profitable.
Shares in DreamWorks Animation, which is based in Glendale, California, rose a penny in after-hours trading to $31.99, after closing down 15 cents at $31.98.
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.


Updated : 2021-05-08 15:49 GMT+08:00