Investors Sell Dreamworks and Buy Domino’s Shares Before Earnings

DreamWorks Animation SKG, Inc. (NASDAQ:DWA) will unveil its latest earnings on Tuesday, February 28, 2012. The average analyst estimate is for net income of 36 cents per share, a decline of 63.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 38 cents during the last month. Analysts are projecting profit to rise by 44.4% versus last year to $1.09.

Last quarter, the company came in at profit of 23 cents per share against a mean estimate of net income of 20 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 2 cents. Analysts are projecting a decline of 22.7% in revenue from the year-earlier quarter to $213.1 million.

Competitors to Watch: Lions Gate Entertainment Corp. (NYSE:LGF), CKX Inc. (NASDAQ:CKXE), Seven Arts Pictures PLC (NASDAQ:SAPX), Point.360 (NASDAQ:PTSX), World Wrestling Entertainment, Inc. (NYSE:WWE), and Rentrak Corporation (NASDAQ:RENT). Lions Gate Entertainment (NYSE:LGF), Disney (NYSE:DIS), Sony (NYSE:SNE), Apple (NASDAQ:AAPL), Time Warner (NYSE:TWX), Comcast Corp (NASDAQ:CMCSA), Crown Media (NASDAQ:CRWN), IMAX (NASDAQ:IMAX), News Corp (NASDAQ:NWSA) and Netflix (NASDAQ:NFLX).

Domino’s Pizza, Inc. (NYSE:DPZ) will unveil its latest earnings on Tuesday, February 28, 2012. The average estimate of analysts is for net income of 48 cents per share, a rise of 20% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $1.66 per share, a rise of 23% from last year.

The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 35 cents per share against a mean estimate of profit of 33 cents per share. Analysts are projecting a rise of 6.8% in revenue from the year-earlier quarter to $512.7 million.

Competitors to Watch: Papa John’s Int’l, Inc. (NASDAQ:PZZA), Pizza Inn, Inc. (NASDAQ:PZZI), Yum! Brands, Inc. (NYSE:YUM), Chipotle (NYSE:CMG), McDonald’s Corporation (NYSE:MCD), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Wendy’s Arby’s Group Inc. (NYSE:WEN), Nathan’s Famous, Inc. (NASDAQ:NATH), and Star Buffet, Inc. (NASDAQ:STRZ).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com