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DreamWorks (DWA) Reports Earnings in Q2; Sales Rise Y/Y


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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.

Operating Results

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



Acquisition Update

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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COMCAST CORP A (CMCSA): Free Stock Analysis Report

WORLD WRESTLING (WWE): Free Stock Analysis Report

DREAMWORKS ANIM (DWA): Free Stock Analysis Report

MSG NETWORKS (MSGN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Business , Investing , Earnings , Stocks
Referenced Symbols: CMCSA , WWE , MSGN



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