Movie Analyst: DreamWorks Animation Earnings Preview

According to analyst Michael Pachter at Wedbush Morgan, DreamWorks Animation SKG (NASDAQ:DWA) is going to deliver in-line earnings on Tuesday.

Here’s Pachter’s bullet points for his preview of DreamWorks Animation earnings:

  • DreamWorks Animation will report its Q1 2011 (ending March) results after market close on Tuesday, April 26, and will host a conference call at 1:30pm PT (800-230-1074, passcode DreamWorks Animation Earnings or at www.dreamworksanimation.com).
  • Expecting Q1:11 results in-line with our lowered estimates.
  • In early March, the company announced a revised release slate through 2014, with two titles shifting by a year compared to expectations (The Croods to 2013 from 2012, and How to Train Your Dragon 2 to 2014 from 2013).
  • Despite the release of Megamind in theaters and two DVDs (How to Train Your Dragon and Shrek Forever After) in Q4:10, DreamWorks Animation was unable to meet lofty expectations.
  • As DreamWorks (NASDAQ:DWA) grows its library and adheres to consistent release strategy, we expect its earnings to be more predictable.
  • Maintaining our NEUTRAL rating and our 12-month price target of $31, which reflects a forward multiple of 15x our 2011 EPS estimate of $2.07.

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