DreamWorks Animation SKG Inc.DWA posted strong financial results in the second quarter of 2016 wherein both the top and the bottom line surpassed the Zacks Consensus Estimate.
DreamWorks' second-quarter 2016 earnings of 3 cents per share compared favorably with the year-ago loss of 13 cents and the Zacks Consensus Estimate of a loss of 8 cents.
Quarterly revenues climbed 29.2% year over year to $221 million and also surpassed the Zacks Consensus Estimate of $187 million. Operating income amounted to $9.4 million in the second quarter against an operating loss of $21.8 million.
Segment-wise, Feature Film revenues improved 10.8% year over year to $97.8 million. Revenues from the Television Series and Specials unit totaled $71.8 million, up 31% year over year while Consumer Products revenues increased 95% to $23.4 million. The New Media segment reported revenues of $27.6 million in the second quarter, up 89% year over year while Other segment contributed $0.3 million to revenues compared with $1.2 million in the prior-year quarter.
At the end of the quarter under review, the company had $75.1 million of cash and cash equivalents compared with $110.8 million at the end of 2015.
Operating cash flow consumption at the end of the second quarter of 2016 totaled $57.0 million compared with $7.3 million at the end of the same quarter in 2015.
DREAMWORKS ANIM Price, Consensus and EPS Surprise
DREAMWORKS ANIM Price, Consensus and EPS Surprise | DREAMWORKS ANIM Quote
DreamWorks is on track to be acquired by Comcast Corp. CMCSA . The deal is expected to close by the end of this year, subject to customary closing conditions.
Zacks Rank & Stocks to Consider
DreamWorks presently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the sector include MSG Networks Inc. MSGN and World Wrestling Entertainment Inc. WWE , both of which carry a Zacks Rank #2 (Buy).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportCOMCAST CORP A (CMCSA): Free Stock Analysis ReportWORLD WRESTLING (WWE): Free Stock Analysis ReportDREAMWORKS ANIM (DWA): Free Stock Analysis ReportMSG NETWORKS (MSGN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research