Dreamworks surges on better-than-expected quarterly results

“Our strong third-quarter results highlight the earnings potential of our company”, Katzenberg told analysts on the company’s earnings call, “when all of our businesses are delivering meaningful segment gross profit and reflect the progress I believe we’ve made” through the year. During the same period a year ago, the firm posted $0.14 earnings per share. The company’s market cap is $1.73 billion.

Revenue jumped 43% to $259.2 million. The company has a 50-day moving average price of $19.61 and a 200 day moving average price of $23.17. Finally, Piper Jaffray reaffirmed a buy rating and issued a $31.00 target price on shares of Dreamworks Animation Skg in a report on Monday, September 28th.

The solid numbers are a shot in the arm for DreamWorks Animation, which is overhauling its feature film unit after a series of film flops such as “Penguins of Madagascar” and “Mr. Peabody and Sherman” caused it stock to tank. They now have $16.00 price objective on the stock, down from their previous price objective of $21.94. FBR & Co. upgraded Dreamworks Animation Skg from an underperform rating to a market perform rating and increased their target price for the stock from $17.00 to $26.00 in a research note on Thursday, July 23rd. The company presently has an average rating of “Hold” and a consensus price target of $21.36. Zacks downgraded Dreamworks Animation Skg from a buy rating to a hold rating in a report on Tuesday, October 27th.

Chief global brand officer Michael Francis, whose hiring Mr. Katzenberg touted as a key move as DreamWorks Animation sought to push harder into merchandise tied to its shows and films, (Link:http://www.wsj.com/articles/SB10001424127887324339204578169703358595588) will resign in December but will remain a consultant.

Also helping the bottom line was the sale of the company’s 14.7 acre Glendale headquarters for $185 million, which should help bolster its film funding efforts, and a series of margin-boosting cost-cutting strategies. The company will also “support and further grow the existing AwesomenessTV roster of talent led channels in these markets, as well as incubate new talent and verticals across the network”. James Fielding, who heads the company’s global consumer products, will take over licensing and franchise management operations. Running sections which are not separately reportable are categorized in all other.