DreamWorks Animation SKG Inc. (DWA: Quote) said Tuesday after the markets closed that its first quarter profit fell 59% from last year, as revenue dropped in the absence of any major new releases during the period. The company's quarterly earnings per share also came in below analysts' expectations.
The Glendale, California-based animation film maker reported net income for the first quarter of $8.8 million or $0.10 per share, compared to $21.7 million or $0.24 per share for the year-ago quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.12 per share for the first quarter.
Total revenues for the first quarter fell 33% to $108.04 million from $162.14 million in the same quarter last year. Thirteen analysts had a consensus revenue estimate of $108.38 million for the first quarter.
Megamind, which was released on November 5, 2010, contributed $18.1 million of revenue in the first quarter, driven mainly by its domestic home video release. It was released into the home entertainment market on February 25.
Shrek Forever After, which was released on May 21, 2010, contributed $19.9 million of revenue in the quarter, driven mainly by home entertainment. It was released into the home entertainment market on December 7.
How to Train Your Dragon, which was released on March 26, 2010, contributed $8.7 million of revenue in the quarter, while Kung Fu Panda contributed $12.1 million and Madagascar 2 contributed revenue of $19.1 million.
Year to date, DreamWorks said it has repurchased about 0.9 million shares of its common stock for $25 million. The company has $125 million remaining under its current authorization.
Looking forward, the company said it expects its second quarter and full year results to be driven by Kung Fu Panda 2, which is scheduled to be released on May 26.
Television revenue for Madagascar 2, How to Train Your Dragon and Shrek Forever After is also expected to contribute to second quarter results, the company added.
Jeffrey Katzenberg, CEO of DreamWorks Animation, said, "We now look forward to kick-starting the summer movie-going season with Kung Fu Panda 2 on May 26th, as family entertainment - and CG animation in particular - has performed at the top of the box office charts so far this year."
DreamWorks Animation shares, which have traded in a range of $25.17 to $43.58 over the past year, closed Tuesday's regular trading session at $26.73, down 12 cents. The stock has remained unchanged in after hours trading.
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by RTT Staff Writer
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