DreamWorks Animation Earnings: Here’s Why Investors are Excited Now

DreamWorks Animation SKG Inc. (NASDAQ:DWA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.25%.

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DreamWorks Animation SKG Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36.36% to $0.07 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 1.05% to $134.65 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DreamWorks Animation SKG Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $-0.03. It beat the average revenue estimate of $99.35 million.

Quoting Management: “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 Officer of DreamWorks Animation. “I’d like to congratulate and thank our new distribution partners at Twentieth Century Fox for helping to propel The Croods to global success and we now look forward to launching our summer tentpole, Turbo, in theaters on July 17th.”

Key Stats (on next page)…

Revenue decreased 49.12% from $264.66 million in the previous quarter. EPS increased to $0.07 in the quarter versus EPS of $-0.98 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.87 to a profit of $0.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)