WASHINGTON (dpa-AFX) - DreamWorks Animation SKG Inc. (DWA) Tuesday reported a lower third-quarter profit, hurt mainly by the weak performance of 'Turbo' while last year's results reflected the blockbuster 'Madagascar 3: Europe's Most Wanted.'
Nevertheless, earnings for the quarter trumped analysts' estimates, as did revenues, sending shares up eight percent in the extended trading hours.
'Strength in our feature film segment is the single largest driver of our positive third quarter earnings,' said Chief Executive Jeffrey Katzenberg.
'Turbo's' performance failed to meet DreamWorks expectations, as it failed to even collect $100 million in US box office collections. 'Turbo,' a film about an ordinary garden snail who becomes the fastest snail in the world, had a production budget of $135 million, but was only able to gross $246 million worldwide.
'Turbo's' performance failed to meet DreamWorks expectations, as it failed to make even $100 million in US box office collections, although was able to gross $246 million worldwide on a a production budget of $135 million.
Meanwhile, DreamWorks' previous quarter results were driven by superb performance of 'The Croods,' while the studio had written off $87 million on the poor holiday run of 'Rise of the Guardians' in the fourth quarter last year.
'Turbo' contributed $6.4 million in the quarter, while 'The Croods' contributed $4 million to feature film segment, the company said in the statement.
Glendale, California-based DreamWorks third-quarter profit dropped to $10.1 million or $0.12 per share from $24.4 million or $0.29 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.
DreamWorks' revenues for the quarter dropped to $154.5 million from $186.3 million last year. Analysts expected revenues of $140.30 million for the quarter.
Selling, general and administrative expenses for the quarter rose to $47.7 million from $36.5 million a year ago.
DWA closed Tuesday's trading at $27.82, up $0.25 or 0.91%, on the Nasdaq. The stock further gained $2.19 or 7.87% in the after-hours trade.
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