WASHINGTON (dpa-AFX) - DreamWorks Animation SKG, Inc. (DWA) said Tuesday after the markets closed that its first quarter profit fell 39% from last year, as revenue declined and operating expenses rose while its latest animated film 'The Croods' released late in the quarter.
However, the company's quarterly results came in above Wall Street expectations, sending its shares higher in after hours trading.
'This year is off to an outstanding start for DreamWorks Animation. The Croods has reached a blockbuster level of nearly $480 million at the worldwide box office and is well on its way to becoming the number one movie released during the first four months of 2013,' said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation.
DreamWorks shares are currently gaining 4.25% in after hours trading after closng the day's regular trading session at $19.28, up 2 cents. The shares trade in a 52-week range of $15.90 to $22.98.
The company is riding high on the success of 'The Croods' following the box-office debacle of its previous release, 'Rise of the Guardians', for which the company took a $87 million writedown in the fourth quarter.
The Croods, released theatrically on March 22, has raked in $479.0 million in box office collections worldwide to date, including $315.5 million from international markets. However, The Croods contributed only $4.0 million of revenue to the first quarter.
Rise of the Guardians, which was released on November 21, contributed $9.6 million of revenue to the quarter, mainly from home entertainment. Madagascar 3: Europe's Most Wanted, which was released in June 2012, contributed $22.8 million of revenue to the quarter, also mainly from home entertainment. Library contributed $41.4 million of revenue to the quarter.
For the first quarter ended March 31, 2013, the Glendale, California-based company reported net income of $5.6 million or $0.07 per share, compared to $9.1 million or $0.11 per share for the year-ago quarter.
On average, 10 analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share for the first quarter.
Revenue for the first quarter fell 1.1% to $134.65 million from $136.08 million in the same quarter last year. Nine analysts had a consensus revenue estimate of $99.35 million for the first quarter.
Year to date, DreamWorks has repurchased 1.3 million shares of its common stock for $25 million. The company has $100 million remaining under its current authorization.
The company said it expects second quarter results to be driven by the performance of The Croods at the worldwide box office. Television revenue from Madagascar 3: Europe's Most Wanted is also expected to contribute revenue to the company's second quarter results.
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