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.
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