DreamWorks Animation SKG, Inc. (NASDAQ:DWA) will unveil its latest earnings on Wednesday, May 2, 2012. Dreamworks Animation SKG is engaged in the development, production, and exploitation of animated films and characters in the worldwide theatrical, home entertainment, television, merchandising and licensing, and other markets.
DreamWorks Animation SKG, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 9 cents per share, a decline of 10% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 15 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 10 cents during the last month. For the year, analysts are projecting net income of 94 cents per share, a decline of 7.8% from last year.
Past Earnings Performance: Last quarter, the company fell short of estimates by 3 cents, coming in at profit of 29 cents per share against a mean estimate of net income of 34 cents. The company topped expectations in the third quarter of the last fiscal year.
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Wall St. Revenue Expectations: Analysts predict a rise of 24.3% in revenue from the year-earlier quarter to $134.3 million.
Analyst Ratings: Analysts are generally pessimistic about DreamWorks Animation SKG, as five analysts rate it as a sell, three rate it as a buy and four rate it as a hold.
A Look Back: In the fourth quarter of the last fiscal year, profit fell 71.5% to $24.3 million (28 cents a share) from $85.2 million (98 cents a share) the year earlier, missing analyst expectations. Revenue fell 20.6% to $219 million from $275.7 million.
An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 50.6% in the third quarter of the last fiscal year and then again in the fourth quarter of the last fiscal year.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 14.9% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.
Stock Price Performance: Between February 29, 2012 and April 26, 2012, the stock price had risen 70 cents (4.1%), from $17.26 to $17.96. The stock price saw one of its best stretches over the last year between October 11, 2011 and October 18, 2011, when shares rose for six straight days, increasing 7.7% (+$1.37) over that span. It saw one of its worst periods between August 12, 2011 and August 22, 2011 when shares fell for seven straight days, dropping 8.9% (-$1.83) over that span.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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