DreamWorks’ profits beat the experts

first_imgFourth quarter profits fell by more than half at DreamWorks Animation SKG Inc., but the company still easily beat Wall Street expectations. The company reported net income of $63.2 million, or 61 cents per share in the quarter ending Dec. 31, 2005, compared to net income of $192 million, of $1.99 per share in the same period last year. Revenue fell to $172.9 million from $495.7 million in the same period last year. Analysts surveyed by Thomson Financial had expected earnings of 42 cents per share. Results were driven mainly by home video revenue from the film “Madagascar,” which contributed $152.3 million worth of revenue during the quarter. Last year’s quarter included home video revenue from the company’s huge hit “Shrek 2” and box office revenue from “Shark Tale.” Despite winning an Oscar for the film “Wallace & Gromit: the Curse of the Were-Rabbit,” DreamWorks Animation took a charge of $25.1 million for the film, which did not perform well at the box office. The write-off reduced fourth quarter earnings by 15 cents per share. The Glendale-based company did not give earnings guidance for 2006. DreamWorks Animation said its next film, “Over the Hedge,” will be released in May and may not generate profits for the company until its release on home video in the fourth quarter. The film “Flushed Away” will be released in November and will not generate significant returns until 2007. Ahead of the income report, DreamWorks shares rose 23 cents to close at $26.86 Thursday on the New York Stock Exchange. They gained 8 cents in late-session trade. AD Quality Auto 360p 720p 1080p Top articles1/5READ MORECasino Insider: Here’s a look at San Manuel’s new high limit rooms, Asian restaurant160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img

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