DreamWorks Animation SKG Inc. on Wednesday reported strong second-quarter earnings thanks to the success of its "Shrek the Third" release in May.
DreamWorks reported second-quarter net income of $62 million (60 cents per share) a 343 percent jump from $14 million (13 cents) for the same period a year earlier, smashing Wall Street's expectations of 33 cents per share, according to a poll by Thomson Financial.
The Glendale-based studio added that revenue soared 196 percent to $222 million, compared with $75 million in the year-ago period, thanks to lower costs due to the transfer of its home video business from Universal Studios to Paramount Pictures. Analysts were expecting revenues of $151 million.
"Shrek the Third" posted the biggest domestic opening ever for an animated film in May and has earned more than $400 million worldwide $320 million of that coming at the domestic box office alone.
The film and its associated merchandise accounted for a lion's share of DreamWork's revenue, banking $109 million during the second quarter.
"Challenged by pirates, Spider-Man, wizards and Transformers, our ogre has more than held his own," DreamWorks' Chief Executive Jeffrey Katzenberg said during a conference call.
Katzenberg also said that studio will release "Bee Movie" in November, which is written by comedian Jerry Seinfeld, and a Broadway musical based on the Shrek films will debut next year, he said.
Katzenberg added that the studio plans two more Shrek films.
Shares in DreakWorks added 48 cents, or 1.5 percent, to $31.48 in afternoon trading Wednesday on the New York Stock Exchange.
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