NEW YORK, Feb 24 — DreamWorks Animation SKG Inc posted fourth- quarter profit that beat analysts’ estimates, reflecting growth from its TV and home video businesses as the maker of Kung Fu Panda movies restructures its struggling movie operation.
Shares rose.
Earnings excluding some items were 55 cents a share, the Glendale, California-based company said yesterday in a statement.
Analysts predicted 15 cents, the average of estimates compiled by Bloomberg.
Revenue was US$319.3 million (RM1.348 billion), beating projections of US$275.4 million.
The positive earnings report is a shot in the arm for DreamWorks Animation, led by chief executive officer Jeffrey Katzenberg, which last year cut 500 jobs, shelved films and sold its campus in California following several disappointing features.
A shift in strategy may be starting to pay off: The company has grown its TV business, focusing on home-video releases and making shows for Netflix Inc, including Dragons: Race to the Edge and Dinotrux.
Its only 2015 theatrical release, Home, contributed US$55.3 million to feature film segment revenue in the fourth quarter -- primarily from TV and home video.
“After a couple years of uneven performance, these are very solid results from DreamWorks,” said Paul Sweeney, a Bloomberg Intelligence analyst.
“It appears that management’s focused theatrical strategy and growing television and merchandise businesses are beginning to gain traction.”
Shares of DreamWorks jumped 9.6 per cent to US$23.08 in late trading after closing down 2 per cent to US$21.06 in New York. The stock has dropped 18 per cent so far this year. — Bloomberg
