I never expected shares of DreamWorks Animation
Perfect. That's just the kind of dreary backdrop that Wall Street likes to render, just before a supposedly dead company snaps to life and speeds past bewildered analysts.
For DreamWorks Animation, that moment came on Thursday, when it posted better-than-expected second-quarter results. The company reversed a year-ago loss by earning $0.13 a share, with revenue more than doubling to $74.9 million. Wall Street played the part of Wile E. Coyote, with its Acme targets of $0.02 per share in profitability on $50.8 million.
What did the pros miss? The power of the library, of course. There's a reason why Disney
|Film||Domestic Box Office Gross|
|Shrek 2||$441.2 million|
|Shark Tale||$160.9 million|
|Over the Hedge||$153.4 million|
So let's not write off Over the Hedge as a dud. A bright spot in last week's Activision
Naturally, the current quarter may be a sleepy one as we wait for those two events to give DreamWorks Animation another kick. The vault should still serve investors well to some extent, but these next few months may be the perfect time to dig into some due diligence and see whether you're ready to snap up shares. After all, DreamWorks is a proven animation studio, trading at a price well below what prized brokerage customers were willing to pay two years and several hits ago.
DreamWorks Animation, Activision, and Disney are all Motley Fool Stock Advisor newsletter recommendations.
Longtime Fool contributor Rick Munarriz loves the art of animated filmmaking. He owns shares of Disney. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.