LOS ANGELES, July 27 (Reuters) - DreamWorks Animation SKG Inc posted a lower profit on Tuesday, but still beat analysts' estimates, for a quarter that lacked any major new DVD releases and was marked by domestic box office results for 'Shrek Forever After' that were below the franchise's earlier films.
DreamWorks said second-quarter net income fell to $24 million, or 27 cents a share, from $25.6 million, or 30 cents a share, a year earlier.
That beat Wall Street's average profit forecast of 22 cents per share, according to Thomson Reuters I/B/E/S.
Revenue also surpassed expectations and rose 20 percent to $158.1 million, helped by the strength of 'Shrek' in international markets. Analysts expected $138.9 million.
'It was a good report driven by overseas strength of 'Shrek,' said Barton Crockett, analyst with Lazard Capital Markets.
Last month, DreamWorks Chief Financial Officer Lew Coleman warned that 'Shrek's' disappointing box office and a barren home video pipeline hurt second-quarter profit and that results would be 'meaningfully below' those of the year-ago quarter.
Box office for 'Shrek Forever After' -- the fourth and final installment of a lucrative franchise that revolves around the adventures of a green ogre named Shrek -- has reached $234 million in the United States and Canada since it opened on May 21, below the more than $300 million taken in by 'Shrek the Third' in the same time period.
The film has yielded $368 million at the international box office, however, which was ahead of expectations, Crockett said.
The company's shares rose slightly after the bell, to $32.65 after closing at $32.08.
DreamWorks also said its board approved a new $150 million share repurchase program.
(Reporting by Susan Zeidler; Editing by Steve Orlofsky) Keywords: DREAMWORKS (susan.zeidler@thomsonreuters.com +1 213 955 6748; Reuters Messaging: susan.zeidler.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
DreamWorks said second-quarter net income fell to $24 million, or 27 cents a share, from $25.6 million, or 30 cents a share, a year earlier.
That beat Wall Street's average profit forecast of 22 cents per share, according to Thomson Reuters I/B/E/S.
Revenue also surpassed expectations and rose 20 percent to $158.1 million, helped by the strength of 'Shrek' in international markets. Analysts expected $138.9 million.
'It was a good report driven by overseas strength of 'Shrek,' said Barton Crockett, analyst with Lazard Capital Markets.
Last month, DreamWorks Chief Financial Officer Lew Coleman warned that 'Shrek's' disappointing box office and a barren home video pipeline hurt second-quarter profit and that results would be 'meaningfully below' those of the year-ago quarter.
Box office for 'Shrek Forever After' -- the fourth and final installment of a lucrative franchise that revolves around the adventures of a green ogre named Shrek -- has reached $234 million in the United States and Canada since it opened on May 21, below the more than $300 million taken in by 'Shrek the Third' in the same time period.
The film has yielded $368 million at the international box office, however, which was ahead of expectations, Crockett said.
The company's shares rose slightly after the bell, to $32.65 after closing at $32.08.
DreamWorks also said its board approved a new $150 million share repurchase program.
(Reporting by Susan Zeidler; Editing by Steve Orlofsky) Keywords: DREAMWORKS (susan.zeidler@thomsonreuters.com +1 213 955 6748; Reuters Messaging: susan.zeidler.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.