When will analysts stop underestimating DreamWorks Animation
Investors won't mind, of course. Performance drives a stock's price, and DreamWorks Animation is making a habit out of landing on the right side of Mr. Market's top- and bottom-line targets.
Revenue slipped 3% to $194.2 million, a startling achievement when one considers that the studio hasn't had a theatrical release since last March's Monsters vs. Aliens. After Hollywood's record 2009, we've come to expect films to do well on the big screen before dying on DVD. In this respect, DreamWorks Animation has the added benefit of releasing its films on IMAX
However, DVD, pay-per-view, and television licensing drove DreamWorks Animation's $194.2 million in fourth-quarter revenue, well ahead of the $176.95 million that analysts were banking on.
The same held true for the studio's bottom line. Earnings of $0.50 a share fell short of the $0.58 a share it delivered a year earlier, but blew past the $0.37 a share that Wall Street was targeting.
Ever since Disney's
It will be hard to underestimate May's Shrek Forever After, since the first three installments have been colossal blockbusters. In fact, Shrek the Third -- even though it came out in May of 2007 -- was the largest individual revenue contributor during the company's most recent quarter.
The timing of the Shrek sequel will also come in handy if next month's How to Train Your Dragon falls flat. Given the glut of 3-D content hitting the corner multiplex this year, it never hurts to have fallback ammo.
A potentially promising wild card here is the onslaught of 3-D television sets coming out in the coming months. Disney, Sony
In the end, 3-D could be just one more way for DreamWorks Animation to land far beyond where analysts have parked.
Will 3-D take off outside the multiplex? Share your thoughts in the 2-D comments box below.
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Longtime Fool contributor Rick Munarriz is a sucker for quality animation. Yes, he owns shares of Disney. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.