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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