DreamWorks Animation SKG Inc. swung to a fourth quarter profit thanks to strong sales of its "Shrek the Third" animated film.
The Glendale-based animation studio reported net income of $94.1 million (98 cents per share), up from a loss of $21.3 million (-20 cents) in the same period a years earlier smashing analysts' expectations of 72 cents share, according to Thomson Financial.
Revenue jumped 42 percent to $290 million, also eclipsing Wall Street's expectations of $277 million.
The third installment of the studio's "Shrek" franchise raked in $179 million in the quarter, mainly due to its Nov. 13 DVD release which sold 15.6 million copies during the period. The film has pulled in almost $800 million in worldwide box office revenue.
Chief Executive Jeffery Katzenberg said 2008 earnings will be driven by the June 6 release of "Kung Fu Panda," an animated comedy starring Jack Black.
For the full year, the company saw net income swell to $218 million from $15.1 million, while revenue soared 94 percent to $767 million. That marks the studio's best annual performance since being spun off from the original DreamWorks studio formed by Steven Spielberg, David Geffen and Katzenberg.
Shares in DreamWorks were up 5.1 percent to $25.69 in early trading Wednesday on the New York Stock Exchange.
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