Dreamworks Animation Skg Inc Second Quarter Earnings Sneak Peek

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Dreamworks Animation Skg Inc (NASDAQ:DWA) will unveil its latest earnings on Tuesday, July 31, 2012. Dreamworks Animation SKG is engaged in the development, production, and exploitation of animated films and characters in the worldwide theatrical, home entertainment, television, merchandising and licensing, and other markets.

Dreamworks Animation Skg Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 25 cents per share, a decline of 37.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 20 cents. Between one and three months ago, the average estimate moved up. It has risen from 22 cents during the last month. Analysts are projecting profit to rise by 9.8% versus last year to 92 cents.

Last quarter, the company came in at profit of 11 cents per share against a mean estimate of net income of 9 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 5 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 15.9% in revenue from the year-earlier quarter to $183.5 million.

Stock Price Performance: From June 26, 2012 to July 25, 2012, the stock price rose $2.32 (13.3%), from $17.42 to $19.74. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 2, 2012, when shares rose for six straight days, increasing 12.5% (+$2.16) over that span. It saw one of its worst periods between August 12, 2011 and August 22, 2011 when shares fell for seven straight days, dropping 8.9% (-$1.83) over that span.

A Look Back: In the first quarter, profit rose 3.2% to $9.1 million (11 cents a share) from $8.8 million (10 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 26% to $136.1 million from $108 million.

Key Stats:

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 14.9% in the third quarter of the last fiscal year and 20.6% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the third quarter of the last fiscal year and fourth quarter of the last fiscal year, profit rose in the first quarter.

Analyst Ratings: With four analysts rating the stock a sell, one rating it as a buy and five rating it as a hold, there are indications of a bearish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.09 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.14 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.8% to $438.4 million while assets rose 2.5% to $1.36 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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