Updated from 12:19 p.m. EDT with earnings and current share price information.
NEW YORK (
beat Wall Street estimates as profits surged 75% thanks to
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
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 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
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,
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
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
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
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