Inside DreamWorks Animation SKG’s Upcoming Earnings Release

DreamWorks Animation SKG, Inc. (NASDAQ:DWA) will unveil its latest earnings on Tuesday, October 25, 2011. 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 21 cents per share, a decline of 55.3% 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 32 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 23 cents during the last month. For the year, analysts are projecting net income of $1.24 per share, a decline of 36.7% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported profit of 40 cents per share versus a mean estimate of 42 cents. Two quarters ago, it reported net income of 10 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 13.7% in revenue from the year-earlier quarter to $163 million.

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

A Look Back: In the second quarter, profit rose 42.1% to $34.1 million (40 cents a share) from $24 million (27 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 38.1% to $218.3 million from $158.1 million.

Key Stats:

The increase in profit in the second quarter came after net income fell in the previous quarter. In the first quarter, net income fell 59.4%.

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 33.4%.

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 July 26, 2011 to October 19, 2011, the stock price had fallen $2.81 (-13%) from $21.57 to $18.76. 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 $10.71 (-36.3%) year to date.

(Source: Xignite Financials)

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