DreamWorks Animation SKG
The 10-second takeaway
For the quarter ended June 30 (Q2), DreamWorks Animation SKG whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
DreamWorks Animation SKG reported revenue of $162.8 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $188.7 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $218.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The nine earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS of $0.15 for Q2 were 63% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.8%, 550 basis points worse than the prior-year quarter. Operating margin was 10.1%, 1,150 basis points worse than the prior-year quarter. Net margin was 7.8%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $137.2 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $692.5 million. The average EPS estimate is $0.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,117 members out of 1,186 rating the stock outperform, and 69 members rating it underperform. Among 295 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 281 give DreamWorks Animation SKG a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DreamWorks Animation SKG is hold, with an average price target of $17.59.
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