DreamWorks Animation Shares Jump After Profit Tops ViewsChristopher Palmeri and Andy Fixmer
DreamWorks Animation SKG Inc., the film studio run by Jeffrey Katzenberg, jumped the most in more than four years after the box-office success of “Turbo” and “The Croods” helped profit top analysts’ estimates.
The shares rose as much as 15 percent to $31.90 in New York, the biggest intraday gain since April 2009. DreamWorks had already climbed 68 percent this year through yesterday, compared with a 24 percent gain in the Standard & Poor’s 500 Index.
The Glendale, California-based company posted third-quarter net income yesterday of $10.1 million, or 12 cents a share. Analysts had predicted that DreamWorks would merely break even in the period, according to data compiled by Bloomberg.
“The Croods,” released in March, and “Turbo,” in theaters in July, continue to amass worldwide box office sales, the company said. “Turbo,” a movie about a speedy snail made for $135 million, has accrued $246.2 million in worldwide ticket sales after a disappointing debut. Investors had been bracing for a writedown on “Turbo,” said Tony Wible, an analyst at Janney Montgomery Scott in Philadelphia.
“The big surprise was no ‘Turbo’ impairment,” he said in an e-mail.
“The Croods” is the sixth highest-grossing film of the year on a global basis, DreamWorks Animation said. The studio shares box office revenue with cinemas and its distributor 21st Century Fox Inc.
While sales fell 17 percent to $154.5 million, they also exceeded the average estimate of $139.7 million.
The company will begin reporting results in four segments: feature films; television series and specials; consumer products; and all other operations, Lew Coleman, DreamWorks Animation’s chief financial officer, said in the statement.
The film division had revenue of $120.7 million and gross profit of $55.4 million. “The Croods” and “Turbo” together contributed revenue of $10.4 million, while “Rise of the Guardians” collected sales of $42.4 million mainly from worldwide pay television, the company said.
“‘Guardians’ continues to surprise and pulled a much better pay TV number,” Wible said.
Television had revenue of $18.2 million and gross profit of $4.2 million, helped by “DreamWorks Dragons: Riders of Berk” on Cartoon Network, the company said.
Gross profit at the consumer products division totaled $3 million on revenue of $12 million, while the all other items segment that includes the AwesomenessTV YouTube channel had revenue of $3.6 million, the company said.
Fourth-quarter results will be driven by the feature film division and holiday-themed TV programming, the company said. The home entertainment releases of “The Croods” and “Turbo” are in the current period, on Oct. 1 and Nov. 12 respectively, the company said.