DreamWorks Animation SKG Inc. posted a better than forecasted net income in the first quarter that rose 69 percent, supported by DVD sales of Shrek the Third and Bee Movie.
The creator of Shrek had a net income of $26.1 million or 28 cents per share, 69 percent up compared to $15.4 million or 15 cents per share posted on the same quarter in 2007. Revenues of the Glendale, California-based company rose 67 percent to $156.6 million from $93.7 million surpassing forecasts of $133.6 million according to Bloomberg polls.
Analysts on average projected earnings of 21 cents a share on revenues of $126.9 million according to Reuters.
Two movies played an important role for the company, totaling a revenue of $97.2 million in the first period of the year. Shrek the Third contributed with $48.3 million led by international home entertainment sales. Dreamworks said it shipped about 19.8 million DVDs of the film during the first quarter.
Bee Movie generated $48.9 million of revenue as it was launched in March 11 to the domestic home market. But the movie also benefited from the international box office. The company said it shipped about 4.8 million DVD and video copies of the film.
Movies like Madagascar, Flushed Away and Wallace & Gromit: The Curse of the Were-Rabbit, also added revenue to the quarter.
Dream Works expects positive results in the year triggered by the performance of Kung Fu Panda which will open domestically on June 6 this year.
Shares of DreamWorks Animation rose 4.90 percent or $1.26 to $27 in the New York Stock Exchange in after hours trading.