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Tuesday, Mar 28, 2023

DreamWorks Takes ‘Turbo’ Write-Down

DreamWorks Animation SKG Inc. missed analysts’ earnings forecasts by a wide margin on Tuesday after the studio took a large write-down for its flop “Turbo.”

The Glendale studio reported net income of $17.2 million (20 cents a share) for the quarter ending Dec. 31, compared with a net loss of $82.7 million (-98 cents) in the same period a year earlier. Revenue decreased 22 percent to $204.3 million.

Contributing to the weak quarterly results was a $13.5 million (12 cents) write-down on “Turbo,” the studio’s summer release about racing snails, and a write-down of $6.7 million (6 cents) on other content.

Analysts estimated earnings of 33 cents on revenue of $227 million, according to Thomson Financial Network.

However, on a pro forma basis, including the content write-downs that totaled 18 cents, it beat earnings estimates.

“Beyond our feature films we plan to continue to invest in our television, consumer products, digital and location-based entertainment businesses, where we believe there are significant growth opportunities for our company going forward,” said Chief Executive Jeffrey Katzenberg in a prepared statement.

DreamWorks Animation will release three feature films this year, starting with “Mr. Peabody & Sherman” in early March.

Shares closed up 35 cents, or 1 percent, to $35.20 on the Nasdaq.

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