DreamWorks Animation SKG
The 10-second takeaway
For the quarter ended June 30 (Q2), DreamWorks Animation SKG beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
DreamWorks Animation SKG recorded revenue of $213.4 million. The 11 analysts polled by S&P Capital IQ anticipated sales of $188.7 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $162.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.26. The nine earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.26 for Q2 were 73% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 37.6%, 780 basis points better than the prior-year quarter. Operating margin was 15.1%, 500 basis points better than the prior-year quarter. Net margin was 10.4%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $144.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $746.2 million. The average EPS estimate is $0.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,098 members out of 1,176 rating the stock outperform, and 78 members rating it underperform. Among 366 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 347 give DreamWorks Animation SKG a green thumbs-up, and 19 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 $21.82.
Is DreamWorks Animation SKG the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add DreamWorks Animation SKG to My Watchlist.
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. The Motley Fool recommends 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.