Research Guru / Moderator
Feb 25, 2011, 12:13 PM
DVD sales of "How to Train Your Dragon" and a tax benefit helped double DreamWorks Animation SKG Inc.'s fourth-quarter profit, the studio behind the Shrek movies announced Thursday.
"Dragon" helps double DWA's fourth-quarter profit
Net income rose to $85.2 million (99 cents a share) from $43.6 million (50 cents) the previous year. With the exception of some items, analysts had expected profit of 73 cents a share, the average of 12 estimates compiled by Bloomberg.
Sales jumped 42% percent to $275.7 million, although 11 analysts' estimates compiled by Bloomberg thought that they would reach $291.7 million.
The tax credit added $45 million (52 cents) to earnings, DreamWorks Animation said.
DWA repurchased 3.1 million of its shares for about $111 million over the year, said a statement from the studio. The Glendale, California-based company has $150 million left under its current authorization.
Home-video sales helped to offset a weak performance at the box office, although Megamind -- which was released Friday on DVD -- won't be a major contributor to the current quarter, DWA said.
One of the studio's three theatrical releases last year, Megamind, collected $320 million worldwide, DreamWorks Animation said.
The movie brought in as much as $90 million less than predicted in United States and Canadian theaters, Cowen & Co. analyst Doug Creutz said in a note to investors Tuesday. He added that animated films were general underperformers through 2010.
DreamWorks Animation shares have dropped 4.6% so far this year. They rose 7 cents to $28.10 at 4 p.m. New York time in Nasdaq Stock Market trading Thursday.
[Via Bloomberg -- http://www.bloomberg.com/...gon-dvd-revenue.html]