DreamWorks Animation SKG, Inc. Second Quarter Earnings Sneak Peek

DreamWorks Animation SKG, Inc. (NASDAQ:DWA) will unveil its latest earnings on Tuesday, July 26, 2011. Dreamworks Animation SKG, Inc. 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. Netflix, Inc. Second Quarter Earnings Sneak Peek>>

DreamWorks Animation SKG, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 40 cents per share, a rise of 48.1% 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 42 cents. Between one and three months ago, the average estimate moved up, but has dropped from 44 cents during the last month. For the year, analysts are projecting net income of $1.43 per share, a decline of 27% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 10 cents per share versus a mean estimate of net income of 10 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 27 cents.

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Wall St. Revenue Expectations: On average, analysts predict $198.3 million in revenue this quarter, a rise of 25.4% from the year ago quarter. Analysts are forecasting total revenue of $751 million for the year, a decline of 4.3% from last year’s revenue of $784.8 million.

Analyst Ratings: Analysts are bullish on DreamWorks Animation SKG as five analysts rate it as a buy, three rate it as a sell and eight rate it as a hold.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 33.4% in the first quarter and rose 41.9%in the fourth quarter of the last fiscal year, 39.4% in the third quarter of the last fiscal year and 19.8% in the second quarter of the last fiscal year.

The decrease in profit in the first quarter breaks a streak of two consecutive quarters of year-over-year profit increases. Net income fell 59.4% in the first quarter while the figure rose 95.7% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

Competitors to Watch: Lions Gate Entertainment Corp. (NYSE:LGF), CKX Inc. (NASDAQ:CKXE), Seven Arts Pictures PLC (NASDAQ:SAPX), Point.360 (NASDAQ:PTSX), World Wrestling Entertainment, Inc. (NYSE:WWE), and Rentrak Corporation (NASDAQ:RENT). Lions Gate Entertainment (NYSE:LGF), Disney (NYSE:DIS), Sony (NYSE:SNE), Apple (NASDAQ:AAPL), Time Warner (NYSE:TWX), Comcast Corp (NASDAQ:CMCSA), Crown Media (NASDAQ:CRWN), IMAX (NASDAQ:IMAX), News Corp (NASDAQ:NWSA) and Netflix (NASDAQ:NFLX).

Stock Price Performance: During April 21, 2011 to July 19, 2011, the stock price had fallen $6.26 (-23.5%) from $26.59 to $20.33. The stock price saw one of its best stretches over the last year between March 22, 2011 and March 31, 2011 when shares rose for eight-straight days, rising 8.3% (+$2.14) over that span. It saw one of its worst periods between November 2, 2010 and November 12, 2010 when shares fell for nine-straight days, falling 12.8% (-$4.73) over that span. Shares are down $9.14 (-31%) year to date.

(Source: Xignite Financials)

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