DreamWorks Posts Big Beat

Earnings fall but are 12 cents ahead of EPS estimates.
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Cartoon factory

DreamWorks Animation


reported smaller first-quarter earnings but beat expectations Tuesday on strong home video sales.

The Glendale, Calif., company, producer of the


franchise, made $12.3 million, or 12 cents per share, for the quarter ended March 31. That compares with a year-ago $45.7 million, or 44 cents per share.

First quarter results in 2005 benefited from the DVD release of



The company reported revenue of $60.1 million in the latest quarter.

Analysts surveyed by Thomson Financial had expected the company to break even on $62 million in revenue.

"The quarter's results were primarily driven by the home video performance of


," said Chief Executive Jeffrey Katzenberg. "During its initial release the title performed well in a highly competitive home video market." Madagascar contributed about $30.7 million of revenue in the quarter, the company said.

Over the Hedge

, the company's next big release, is slated for the weekend of May 19, and has received a healthy amount of positive buzz. It will be the first film from the company under a new distribution agreement with


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Paramount, which purchased sibling live-action company Dreamworks SKG several months ago.

Looking forward, the company expects the balance of 2006 to be primarily driven by the theatrical and home video performance of

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Wall Street analysts expect DreamWorks Animation to earn 2 cents a share on $52 million in revenue during the second quarter.

On Tuesday DreamWorks Animation shares fell 73 cents to $26.02.