DreamWorks Animation Posts Falling Net Income and Revenue
DreamWorks Animation reported fourth-quarter revenue that fell to $219 million from $276 million a year ago and net income that dropped to $24 million from $85 million.
The mixed results and uninspiring guidance the company offered disappointed analysts and the stock fell as much as 6 percent in after-hours trading after rising 2 percent to $19.65 during the regular session.
Revenue was $12 million above what Wall Street analysts expected from DWA but the copany earned just 29 cents per share, about 3 pennies shy of expectations.
Kung Fu Panda 2 led all revenue generators with $50 million during the quarter. The movie has grossed $665 million worldwide.
Puss in Boots was next at $24 million in revenue for the quarter. The film has taken in $535 million worldwide.
Sales of consumer products related to Puss in Boots fell below expectations due to weakness in the video game sector, and the company said it expects that industry to struggle this year, as well.
Puss in Boots also cost more than $130 million to make in part due to high salaries for voice talent.
For the entire year, DWA recorded $87 million profit on $706 million revenue. This year's results will largely depend on the performance of Madagascar 3, which opens June 8.
Megamind contributed $19 million due to international pay TV and the company said 5 million home video units have been sold thus far.
Shrek Forever After and How to Train Your Dragon, which each boast 9.7 million home video units sold, contributed $9 million and $8 million, respectively.
CEO Jeffrey Katzenberg was peppered with questions about a recent deal with Shanghai Media Group and China Media Capital during a conference call with analysts. He avoided details, but prediected revenue from the joint venture will come as soon as this year.
Katzenberg also said that a new distribution partner to replace an expiring deal with Paramount Pictures probably won't be announced until the fall.