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Thursday, Feb 29, 2024

DreamWorks Bombs In Earnings

Box office turkey “Mr. Peabody and Sherman” contributed to DreamWorks Animation SKG Inc. reporting on Tuesday a much wider first quarter loss than analysts forecasted. The Glendale animation studio reported a net loss of $43 million (-51 cents a share) for the quarter ending March 3, compared with net income of $5.6 million (7 cents) in the same period a year earlier. Revenue increased 9 percent to $147.2 million. Analysts on average expected net income of -14 cents on revenue of $137.2 million, according to Thomson Financial Network. The studio took a $57 million write down on “Mr. Peabody and Sherman,” which was released in theaters in early March and grossed $261 million at the worldwide box office. The write down was partially offset mitigated by a $22.5 million income tax benefit recorded in the quarter. DreamWorks Animation Chief Executive Jeffrey Katzenberg acknowledged the film’s poor performance is evidence of challenges in the company’s feature film segment – which needs to be turned around.. “Our next film is ‘How to Train Your Dragon 2’ (in June), and I am confident that its performance will put us back on-track,” Katzenberg said in a prepared statement. Shares closed down 12 cents, or about half a percent, to $26.37 on the Nasdaq.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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