DreamWorks Animation SKG Inc. late Tuesday reported 59 percent lower profit in the first quarter, largely due to the lack of a major theatrical release in the period. The results met Wall Street expectations.
After the markets closed, the Glendale film studio reported net income of $8.8 million (10 cents per share), compared with $21.7 million (24 cents) a year earlier.
Revenue fell 33 percent to $108 million, with most of the sales coming from home video releases of older movies such as “Megamind” and "Shrek Forever After." The company said it expects a stronger second quarter due to the May 26 release of “Kung Fu Panda 2.”
Analysts surveyed by Thomson Reuters on average expected per-share profit of 10 cents on revenue on $107 million.
“DreamWorks Animation's first quarter was driven primarily by our 2010 films," said Chief Executive Jeffrey Katzenberg in a statement. "We now look forward to kick-starting the summer movie-going season.”
Shares closed down 12 cents, or less than 1 percent, to $26.73 on the Nasdaq.
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