DreamWorks Animation SKG
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DreamWorks Animation SKG beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
DreamWorks Animation SKG reported revenue of $219.0 million. The 12 analysts polled by S&P Capital IQ expected a top line of $206.1 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $275.7 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 $0.29. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.29 for Q4 were 71% lower than the prior-year quarter's $0.99 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 27.2%, 680 basis points worse than the prior-year quarter. Operating margin was 14.5%, 800 basis points worse than the prior-year quarter. Net margin was 11.1%, 1,980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $135.0 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $714.7 million. The average EPS estimate is $1.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,087 members out of 1,154 rating the stock outperform, and 67 members rating it underperform. Among 336 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 326 give DreamWorks Animation SKG a green thumbs-up, and 10 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 $18.58.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of DreamWorks Animation SKG. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.