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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