Fourth-quarter profits at
got flushed away, but the animation studio still managed to beat expectations on Wall Street.
The company recorded a loss of $21.3 million, or 20 cents a share for the quarter, as results were pulled down by a charge of 80 cents a share on the partial write-off of film costs for
, the company's animated film that was a box office fizzle.
A year earlier, DreamWorks recorded earnings of $63.2 million, or 61 cents a share, bolstered by a tax benefit and strong sales of its
DreamWorks' fourth-quarter revenue increased 18% to $204.3 million from $172.9 million in the prior-year period, driven by the DVD release of
Over the Hedge
Analysts had expected a loss of 42 cents a share on sales of $158.9 million, according to consensus estimates reported by Thomson First Call.
fell short of the company's "financial expectations despite critical acclaim," said DreamWorks in a press release. "Its performance offset what was otherwise a strong year for the rest of our titles, especially in the home video market."
Looking ahead, DreamWorks said it expects full-year results to be driven by
Shrek the Third
, which is set for release on May 18. Its second film for 2007,
, is slated for release on Nov. 2, but revenue resulting from that will mostly be recorded in 2008.
Shares of DreamWorks closed down 84 cents, or 3%, to $26.80 during a sharp selloff in the broader stock market.