DreamWorks Animation SKG
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DreamWorks Animation SKG crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
DreamWorks Animation SKG reported revenue of $186.3 million. The 10 analysts polled by S&P Capital IQ looked for a top line of $133.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $160.8 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 seven earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.29 for Q3 were 26% higher than the prior-year quarter's $0.23 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 38.8%, 600 basis points better than the prior-year quarter. Operating margin was 18.6%, 290 basis points better than the prior-year quarter. Net margin was 13.1%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $245.8 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $702.6 million. The average EPS estimate is $0.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,109 members out of 1,181 rating the stock outperform, and 72 members rating it underperform. Among 302 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 288 give DreamWorks Animation SKG 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 SKG is hold, with an average price target of $17.85.
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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. The Motley Fool owns shares of DreamWorks Animation. Motley Fool newsletter services recommend DreamWorks Animation. 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.