This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dreamworks Profits Up 75% Thanks to 'The Croods'

Updated from 12:19 p.m. EDT with earnings and current share price information.

NEW YORK ( TheStreet) -- Dreamworks (DWA - Get Report) beat Wall Street estimates as profits surged 75% thanks to The Croods worldwide.

Dreamworks jumped 1.93% to close Wednesday trading at $24.76, extending the animation studio's 2013 advance to 48% this year to date, surpassing the S&P 500 which has tacked on 19% this year.

Second-quarter revenue was expected to climb 16% to $188.9 million, or 20 cents a share, from $162.8 million, or 15 cents. However, Dreamworks was able to outstrip the forecasts by reporting $213.4 million in revenue. Net income rose to $22.3 million, or 26 cents a share, from $12.8 million, or 15 cents a share. Much of the success in attributed to The Croods. The film brought in $583.9 million worldwide to date, contributing $71.8 million to this quarter's revenue.

"DreamWorks Animation significantly outperformed in the second quarter, thanks primarily to The Croods' incredibly successful box office run, where it has amassed $584 million worldwide to become the fifth highest grossing movie of the year," said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation in a statement Wednesday. "We also have a great deal of momentum within our television, consumer products and location-based entertainment businesses today, as DreamWorks Animation continues to diversify and evolve into a branded family entertainment company."

Dreamwork Animation SKG Inc has been helped by new television content and programming contracts. On July 19, Chief Executive Officer Jeffrey Katzenberg said the Glendale, Calif.-based company would generate $100 million in TV production revenue in 2013 through its deals with Netflix (NFLX - Get Report) and German television channel RTL. Katzenberg said in the conference call to investors and the press that the partnerships could result in $200 million of revenue by 2015 as Netflix's subscription numbers grow.

"Television is a transformative line of business and we expect going forward it will be a significant source of revenue," said Katzenberg in the conference call.

As the Glendale, Calif.-based company plans to provide Netflix with classic programming and 300 hours of new television, it continues to produce films. Dreamworks has released Turbo, The Croods and Rise of the Guardians in the last year. The three films have grossed $348 million so far. Wells Fargo analysts predict the latest film, Turbo released on July 17, will collect $90 million in its six-week run. The film company plans to release a sequel to How to Train Your Dragon in 2014.

The film company has been expanding its collection of rights in the past two years, creating several opportunities in the years to come. Katzenberg bought Classic Media for $155 million in 2012 for the rights to Casper the Friendly Ghost and Rocky & Bullwinkle. Dreamcast also acquired the rights to produce a Trolls movie in April from the Dam family. In a June 28 press release, the company stated they plan to release the movie on November 4, 2016.

-- Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DWA $22.16 0.00%
NFLX $82.79 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs