As its pending acquisition by Comcast looms in the distance, DreamWorks Animation‘s second quarter earnings quietly beat Wall Street projections.
Revenue at the company behind “Shrek” and “How to Train Your Dragon” topped out at $220.9 million, a 29% jump from the $170.8 million it reported in the year-ago period. Analysts were looking for the company to do $182.1 million in revenue. The company lost $1.4 million, but adjusted earnings of 10 cents a share bested predictions that DreamWorks Animation would lose 7 cents a share. Net income hit $9.4 million, best a loss of $21.8 million in the prior year quarter.
DreamWorks Animation did not have a new theatrical release during the three-month period. The stronger than expected financial results were attributable to a combination of factors, among them were improved results from its home entertainment business. The studio also delivered more episodes of the television shows it produces for Netflix than it expected to, which boosted revenue. Those programs included “Dragons Race to the Edge,” “Dawn of the Croods,” “The Mr. Peabody and Sherman Show,” and “All Hail King Julien.” Profits for the division climbed more than 15% to $22.1 million on revenue of $71.8 million.
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DreamWorks Animation is not hosting a conference call for analysts because of the deal with Comcast. Nor did it announce its earnings via a press release, as is standard.
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Last spring, Comcast agreed to buy the company for $3.8 billion, believing that it could bolster its family entertainment business. The sale is expected to close before the end of the year. After the sale closes, DreamWorks Animation CEO Jeffrey Katzenberg will step down and will become chairman of DreamWorks Animation New Media, comprising its ownership stakes in AwesomenessTV and Nova. He will also serve as a consultant to NBCUniversal.
DreamWorks Animation does not have another theatrical release until “Trolls,” a big screen adaptation of the popular children’s dolls, debuts in November.
