DreamWorks Animation SKG Inc. (DWA: Quote), the maker of 'Shrek' and 'Kung Fu Panda' film series, said Tuesday its second quarter profit declined from last year, mostly on lower revenues. DreamWorks' quarterly earnings as well as revenues fell short of Street estimates.
The company's shares are currently down more than 8.0 percent in after-hours trade on the Nasdaq.
The Glendale California-based company reported second quarter net income of $12.8 million or $0.15 per share, compared to $34 million or $0.40 per share last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.25 per share for the quarter.
DreamWorks reported second quarter revenues of $162.8 million, compared to $218.3 million last year. Eleven analysts on consensus expected revenues of $186.17 million for the quarter.
Madagascar 3: Europe's Most Wanted contributed about $54.8 million of revenue to the 2012 quarter. The film, released on June 8, has grossed nearly $210 million at the domestic box office and $293 million at the international box office to date.
Puss In Boots, which is a spin off from the successful film series Shrek, chipped in with $22.8 million of revenue, driven by home entertainment. Kung Fu Panda 2 contributed $46.4 million of revenue, on domestic pay television. Other revenues, including contribution from Shrek Forever After, contributed about $37.4 million of revenue.
Moving forward, DreamWorks said its third quarter results are expected to be led mainly by the sustained theatrical performance of Madagascar 3: Europe's Most Wanted. Television revenue for Puss In Boots is also expected to contribute to results.
DreamWorks earlier this month agreed to acquire Classic Media for $155 million from Boomerang Media Holdings I LLC. Classic Media owns over 450 family entertainment titles and over 6,100 episodes of animated and live-action. DreamWorks Animation expects the transaction to close during the quarter ending September 30.
Several movie studio companies will be releasing their results this week. Time Warner Inc. (TWX), Comcast Corp. (CMCSA, CMCSK) will be coming out with their earnings report on Wednesday, while Sony Corp. (SNE) will release results Thursday.
DWA closed Tuesday at $19.20, up 0.10%, on a volume of 0.8 million shares on the NYSE. In after hours, the stock dropped $1.60 or 8.33%. In the past year, the stock has traded in a range of $16.34 - $21.67.
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by RTT Staff Writer
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