DreamWorks Animation soared 17.7% to $32.74 on Wednesday afternoon after its earnings beat expectations. The studio behind Shrek posted third-quarter earnings of 12 cents a share on revenue of $154.55 million. Analysts surveyed by Thomson Reuters expected break-even earnings on $139.53 million in revenue.
"Strength in our feature film segment is the single largest driver of our positive third-quarter earnings," said CEO Jeffrey Katzenberg in a statement. "It also continues to propel new areas of growth for DreamWorks Animation as we have now transitioned into a global, diversified family entertainment company."
Net income dropped 59% year over year to $10 million, due to a lackluster performance for Turbo compared with last year's summer release Madagascar 3. During the quarter, strong pay-TV numbers for Rise of the Guardians contributed $42.5 million, despite its lack of commercial success during a theatrical release in the first quarter.
The company also said it would begin reporting in four separate segments: feature films, television series and specials, consumer products and other. Its feature film segment is the most profitable, contributing 78%, or $120.7 million, to total revenue for the quarter.
For the fourth quarter, the Glendale, Calif.-based company said profits would be primarily driven by feature films and holiday-themed content in its television series and specials segment. Analysts expect earnings of 31 cents a share on $230.06 million in revenue for the seasonally-strong quarter.