DreamWorks Earnings: Here’s Why the Stock is Up 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 4.52%.

DreamWorks Animation SKG Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 73.33% to $0.26 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Rose 31.08% to $213.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DreamWorks Animation SKG Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.2. It beat the average revenue estimate of $189.7 million.

Quoting Management: “DreamWorks Animation significantly outperformed in the second quarter, thanks primarily to The Croods’ incredibly successful box office run, where it has amassed $584 million worldwide to become the fifth highest grossing movie of the year,” said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. “We also have a great deal of momentum within our television, consumer products and location-based entertainment businesses today, as DreamWorks Animation continues to diversify and evolve into a branded family entertainment company.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 271.43% from $0.07 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 $0.06. For the current year, the average estimate has moved down from a profit of $0.81 to a profit of $0.78 over the last ninety days.

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