Dreamworks Posts Surprise Profit

The success of "Madagascar" home video sales help buoy results.
Publish date:

The success of its


film powered



to an unexpected profit for its third quarter.

After the bell Tuesday, the animation studio reported third-quarter net income of $10.5 million, or 10 cents a share, compared with the loss of $656,000, or a penny a share, it recorded for the same period last year.

Analysts on Wall Street had an average estimate for a loss of 2 cents a share, according to Thomson First Call.

DreamWorks' revenue fell to $55.6 million from last year's $87.1 million.

The company warned investors after its second quarter that it would have no major revenue drivers in the third quarter, but home-video sales of


contributed revenue of $24.1 million, followed by

Wallace and Gromit: Curse of the Were-Rabbit

, which generated revenue of about $17.2 million.

For the rest of the year, DreamWorks said its revenue will be driven by "Over the Hedge," which hit the box office in mid-October. So far, the film has brought in $325 million on a worldwide basis, making it the eighth-highest grossing film of 2006.

Shares of DreamWorks were recently up 55 cents, or 2.1%, to $27 in after-hours trading.