DreamWorks Animation reports 103% earnings increase

DreamWorks Animation Studios, riding a wave of revenue generated by its summer movie “Shrek Forever After,� reported a 103% increase in profit for the quarter ended Sept. 30.

The Glendale-based studio earned $39.8 million, or 47 cents a share, on revenue of $188.9 million, compared with net income of $19.6 million, or 23 cents, on revenue of $135.4 million for the same period in 2009.

The results blew past Wall Street estimates. Analysts surveyed by Thomson Reuters had forecast a profit of 35 cents per share on revenue of $163 million.

“Our strong third quarter was driven primarily by the box-office success of ‘Shrek Forever After,’ which has become DreamWorks Animation’s highest-grossing international release of all time,� said DreamWorks Chief Executive Jeffrey Katzenberg.

Although the fourth “Shrek� film did not perform as well as most investors had hoped in the domestic market, the sequel made up for it overseas, so far generating $497 million in international ticket sales for a worldwide box-office total of $735 million. The film contributed $120.4 million in revenue in the quarter.

“Shrek Forever After� is the second film DreamWorks released this year, following “How to Train Your Dragon,� which opened in theaters in March and subsequently became a top-selling DVD since its release in home video this month.

DreamWorks’ next film, “Megamind,� comes out in the U.S. on Nov. 5, marking the first time the studio has released three movies in a single year. The studio last year said it would increase the frequency with which it released films in a move to boost revenue and provide more stable results. DreamWorks’ quarterly results can vary widely depending on whether it has a film or DVD on the market at the time.

In a conference call with analysts, Katzenberg also touted the studio’s growing TV business, noting that the studio will have four TV series on the air by 2012, including a Cartoon Network show based on “How to Train Your Dragon.�

Results were released after the market closed, but investors responded favorably in after-hours trading. The company’s shares rose 80 cents to $35.16

“The company continues to impress me with their ability to convert the good performance of their films into bottom-line success,� said Doug Creutz, an analyst with Cowen U.S. Equity Research.

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