DreamWorks Animation SKG Inc posted a better-than-expected third-quarter profit last night, helped by a strong performance of its Kung Fu Pandafilm.
DreamWorks posted third-quarter net income of $37.4 million, or 41 cents per share, compared with $47 million, or 47 cents per share in the year-earlier period, bolstered by the company's blockbuster
Shrek 3.
Revenues fell to $151.5 million from $160.8 million.
Wedbush Morgan Securities analyst Michael Pachter said the quarterly results were helped by some surprising items.
"This was an in-line quarter with a little help from better than expected domestic pay TV revenues for
Bee Movieand tax benefits," he said.
DreamWorks shares were little changed in very light after-hours trading after closing up 7.34 percent at $27.49 on the New York Stock Exchange. "Kung Fu Panda," released in June, has become one of DreamWorks' most successful flicks, generating $630 million in worldwide ticket sales.
For the quarter, DreamWorks said
Kung Fu Pandacontributed about $63.3 million in revenue, primarily from international box office receipts in the period.
Looking ahead, many analysts have strong expectations for
Madagascar: Escape 2 Africa, to be released on November 7th, the DVD release of
Kung Fu Panda.
Analysts believe the
Madagascarsequel will reap around $500 million in worldwide ticket sales, given that the first film scored about $500 million.
DreamWorks said last night it does not expect significant revenue in the fourth quarter from the distribution of the sequel, as its distributor may not have recouped its upfront marketing and distribution costs.