DreamWorks Animation SKG
The 10-second takeaway
For the quarter ended March 31 (Q1), DreamWorks Animation beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved.
Gross margins shrank, operating margins expanded, and net margins contracted.
DreamWorks Animation SKG logged revenue of $136.1 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $132.8 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $108.0 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 $0.11. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share. GAAP EPS of $0.11 for Q1 were 10.0% higher than the prior-year quarter's $0.10 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 29.1%, 420 basis points worse than the prior-year quarter. Operating margin was 8.1%, 280 basis points better than the prior-year quarter. Net margin was 6.7%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $161.7 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $682.3 million. The average EPS estimate is $0.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,115 members out of 1,183 rating the stock outperform, and 68 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 307 give DreamWorks Animation 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 is hold, with an average price target of $17.68.
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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.