Why DreamWorks Animation (DWA) Stock is Soaring in After-Hours Trading
NEW YORK (TheStreet) -- Shares of DreamWorks Animation (DWA) are gaining by 12.57% to $20.21 in after-hours trading on Thursday, after the movie studio reported better than expected 2015 third quarter earnings results.
The studio behind the popular Shrek and How to Train Your Dragon franchises reported adjusted earnings of 2 cents per share for the most recent quarter.
Analysts had been expecting the company to post a loss of 9 cents per share for the period.
Revenue grew by 43.3% year over year to $259.2 million for the three months ending September 30.
Analysts were looking for $201 million in revenue.
"DreamWorks Animation delivered solid third quarter results, highlighted by strong top-line growth and meaningful segment gross profit across all of our businesses," company CEO Jeffrey Katzenberg said in a statement.
The company still has "considerable work ahead of us," the CEO added.
Separately, TheStreet Ratings team rates DREAMWORKS ANIMATION INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate DREAMWORKS ANIMATION INC (DWA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: DWA
DWA
data by
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.