DreamWorks Q4 Tops Street; Shares Up 10%

(RTTNews) - DreamWorks Animation SKG Inc. (DWA) on Tuesday reported a profit for the fourth quarter turning around from a loss last year, as revenues jumped 36 percent. Shares of the company gained over 10 percent in extended session after the company's profit and revenues trumped Wall Street estimates.

Glendale, California-based DreamWorks reported fourth-quarter profit of $42.1 million or $0.48 per share, compared to a loss of $263.2 million or $3.08 per share last year.

Excluding special items, adjusted earnings were $48.1 million or $0.55 per share. Analysts polled by Thomson Reuters expected an earnings of $0.16 per share for the quarter.

DreamWorks, the studio behind 'Shrek', 'Kung Fu Panda' and 'How to Train Your Dragon,' said revenues for the fourth quarter jumped 36.3 percent to $319.3 million from $234.2 million a year ago. Analysts had a consensus revenue estimate of $274.02 million for the quarter.

The studio said revenue growth was driven by performance across all core business segments.

Chief Executive Jeffrey Katzenberg said, "DWA delivered its best top line result in 11 years and highest revenue growth in eight years, accelerating 34% from 2014. In addition, our positive adjusted operating income and operating cash flow demonstrate our commitment to profitably grow our businesses while keeping a sharp eye on cost management and productivity improvements."

Revenues from the Feature Film segment increased to $146.4 million from $131.3 million in the prior-year period. Home, which was released domestically on March 27 collected $386 million at the worldwide box office. The film contributed feature film segment revenue of $55.3 million in the quarter, from worldwide pay television and home entertainment.

Revenues from the Television Series and Specials segment surged to $104.9 million from $50.7 million a year ago. Revenues from the Consumer Products segment increased to $31.7 million from $22.1 million last year.

DWA closed Tuesday's trading at $21.06, down $0.45 or 2.09%, on the NYSE. The stock, however, rose $2.28 or 10.83% in the after-hours trade.