DreamWorks Loss Widens On Charges

(RTTNews) - DreamWorks Animation SKG Inc. (DWA) on Thursday reported a loss for the first quarter that widened from a year ago period, as restructuring charges offset a 13 percent increase in revenues. Shares of the company were trading down 6 percent in the extended trading hours.

Glendale, California-based DreamWorks' first-quarter loss widened to $54.8 million or $0.64 per share from last year's loss of $42.9 million or $0.51 per share.

Excluding special items, adjusted loss for the quarter was $21.5 million or $0.25 per share. On average, eight analysts polled by Thomson Reuters expected a loss of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

The company recorded a $31.9 million pre-tax charge largely due to its restructuring plan. In January, the independent studio announced it will cut 500 jobs and only produce two movies a year as part of its efforts to improve its animation movie business' performance.

DreamWorks, the studio behind 'Shrek', 'Kung Fu Panda' and 'How to Train Your Dragon,' said revenues for the first quarter rose 13.1 percent to $166.53 million from $147.24 million a year ago. Analysts had a consensus revenue estimate of $164.50 million for the quarter. Analysts' estimates typically exclude special items.

"While 2015 is a transitional year for us, the worldwide box office performance of 'Home' serves as early evidence that the changes we're making in the core feature animation business are working," said CEO Jeffrey Katzenberg.

"Home", an animation movie voiced by Rihanna and Jennifer Lopez, has collected nearly $300 million from worldwide box office, according to Box Office Mojo.

DWA closed Thursday's trading at $26.06, down $0.61 or 2.29%, on the NYSE. The stock further slipped $1.56 or 5.99% in the after hours trading.