Can DreamWorks Animation Meet These Numbers?

Seth Jayson, The Motley Fool
Updated

DreamWorks Animation (NAS: DWA) is expected to report Q2 earnings on July 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DreamWorks Animation's revenue will contract 15.0% and EPS will contract 37.5%.

The average estimate for revenue is $185.4 million. On the bottom line, the average EPS estimate is $0.25.


Revenue details
Last quarter, DreamWorks Animation reported revenue of $136.1 million. GAAP reported sales were 26% higher than the prior-year quarter's $108.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.11. GAAP EPS of $0.11 for Q1 were 10.0% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 29.1%, 420 basis points worse than the prior-year quarter. Operating margin was 8.1%, 280 basis points better than the prior-year quarter. Net margin was 6.7%, 140 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $694.7 million. The average EPS estimate is $0.94.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,117 members out of 1,186 rating the stock outperform, and 69 members rating it underperform. Among 302 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 289 give DreamWorks Animation a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DreamWorks Animation is hold, with an average price target of $17.68.

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The article Can DreamWorks Animation Meet These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend DreamWorks Animation. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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