DreamWorks Animation posts better-than-expected 2Q results
A video-game deal with Activision Blizzard Inc., as well as the robust sales of animated film "Kung Fu Panda" and video games, helped DreamWorks Animation SKG Inc. post better-than-expected second-quarter sales!
Going by the recently posted quarterly results of the Glendale, California-based company, the total sales figures of $132 million beat the average analysts' estimates of $113.8 million sales. The results also included the $24 million in sales and a 10-cents-per-share gain accruing from DreamWorks' agreement with Activision Blizzard.
While the second-quarter revenue of DreamWorks tumbled to $132 million, from $141.5 million during the same quarter last year, it still beat the average Wall Street forecast of $117.5 million.
DreamWorks' second-quarter net income stood at $25.6 million, as against the year-before figures of $27.5 million.
Specifically speaking, DreamWorks' 2008 summer release for pay TV and DVD, "Kung Fu Panda," contributed nearly $32.7 million in revenue during the quarter, along with driving global sales of about 15.2 million DVDs. Meanwhile, the company's other animated title, "Madagascar: Escape 2 Africa," released in fall last year, contributed almost $26.1 million revenue in the second quarter.
Commenting on DreamWorks' quarterly results, Michael Pachter, analyst with Wedbush Morgan Securities, said: "The company is getting more and more and more ancillary revenues from things other than its films, such as video games, Broadway and television."