DreamWorks Animation SKG Inc. said first-quarter profits rose 69 percent mostly due to the sales of new “Shrek the Third” and “Bee Movie” DVDs.

The animation studio on Tuesday reported net income of $26.1 million (28 cents per share), compared with $15.4 million (15 cents) in the same period a year earlier.

Sales at the Glendale-based studio rose 67 percent to $157 million, beating Wall Street’s estimates of $134 million, according to Bloomberg.

Revenue from “Bee Movie,” and “Shrek the Third” totaled $97.2 million for the quarter, led by home entertainment sales.

The company also said that earnings for the rest of 2008 will depend on “Kung Fu Panda.” The movie is scheduled for release June 6.

Shares in DreamWorks closed down 1.8 percent but quickly gained 3 percent to $26.50 in after-market trading Tuesday.