DreamWorks Posts Loss, Beats Estimates

DreamWorks Animation SKG Inc. beat Wall Street expectations in earnings and revenue for the third quarter, helped by strong increases from its television and consumer products divisions. The Glendale film and television studio reported a net loss of $4 million (-4 cents a share) in the quarter ended Sept. 30, compared with net income of $11.9 million (14 cents) in the same period a year earlier. Revenue increased 43 percent to $259 million. Analysts on average expected a net loss of -5 cents a share on revenue of $206 million, according to Thomson Financial Network. When adjusted to include a $6.1 million expense charge related to certain investments that were determined to not be recoverable, net income was $1.4 million, or 2 cents a share. Chief Executive Jeffrey Katzenberg called the third quarter results solid across all of DreamWorks Animation’s businesses. “While we still have considerable work ahead of us, I am proud of the team’s collective efforts and remain confident that we are well positioned to meet or even exceed our stated goals for the year while continuing to drive long-term value for our stakeholders,” Katzenberg said in a prepared statement. The studio released only one film this year, “Home,” in March and was released on DVD during the third quarter. Total filmed entertainment revenue in the quarter was $157.9 million, an increase of 10 percent from the prior year. The television series and specials segment contributed $50.7 million in revenue, an increase of 254 percent from the prior year that was attributed to delivering a higher number of episodes. Consumer products revenue increased 123 percent to $27 million. Shares closed up 7 cents, or less than a percent, to $20.21 on the Nasdaq.