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Dreamworks Animation SKG Inc (DWA)

  • Thu, Nov. 5, 4:14 PM
    • DreamWorks Animation (NASDAQ:DWA) has leapt 14.8% after a Q3 report where it posted a profit after excluding restructuring costs.
    • Net income was $1.4M after adjusting for $3.6M in pretax charges connected to the company's January restructuring plan.
    • Revenue by segment: Feature films, $157.9M (up 10.9%); Television Series and Specials, $50.7M (up 255%); Consumer products, $27M (up 123%); New Media, $20.7M (up 144%); other, $2.9M.
    • The company notes that Home (its only slated theatrical film this year) has hit $386M in worldwide box office, and contributed $49.7M to the feature film segment this quarter.
    • Conference call to come at 4:30 p.m. ET.
    • Press release
    | Thu, Nov. 5, 4:14 PM | Comment!
  • Fri, Oct. 30, 3:35 PM
    • DreamWorks Animation (NASDAQ:DWA) is among today's top losers in media, down 8.7% as Bank of America/Merrill Lynch downgraded the stock to Underperform, from Neutral.
    • The analysts have a $16 price target. Shares closed yesterday at $21.94, and are down to $20.04 today.
    • After a bit of a rebound from a rough 2014, DreamWorks shares have fallen anew in the past three months, down 18%.
    • Overall, analyst consensus is for a Hold rating with a $21 target.
    • Previously: DreamWorks Animation -5.1% as net loss widens on restructuring cost (Aug. 04 2015)
    • Previously: DreamWorks his 15-month high on bullish Stifel note (Jun. 05 2015)
    | Fri, Oct. 30, 3:35 PM | Comment!
  • Tue, Oct. 27, 4:37 PM
    • DreamWorks Animation (DWA -2.9%) has added Maggie Wilderotter to its board of directors.
    • Wilderotter is executive chairman of Frontier Communications and was its CEO from 2006 until relinquishing that title earlier this year.
    • Wilderotter has been hitting the boards since leaving Frontier's CEO post. In addition to serving at Frontier, she has seats at Juno Therapeutics, Xerox, and (as of earlier this month) Costco.
    | Tue, Oct. 27, 4:37 PM | Comment!
  • Tue, Aug. 4, 5:41 PM
    • DreamWorks Animation (NASDAQ:DWA) has now slipped 5.1% after hours, after beating expectations on top and bottom lines even as net loss widened due to the company's ongoing restructuring, which has involved deep staff cuts and the sale of its headquarters this year.
    • Revenue grew almost 40% Y/Y as Home -- the studio's only theatrical release for the year -- contributed $23.9M in film revenue for Q2. The film hit physical DVD and Blu-ray before quarter's end, and overall it's earned $177M domestically and $209M internationally at the box office (total $386M worldwide).
    • Adjusted results exclude a $20.9M pretax charge (an effect of $0.25 share on earnings) associated with the restructuring plan. Some $2.4M was due to termination and employee-related costs, $10.9M on accelerated depreciation/amortization with the closure of Redwood City, and $7.6M related to excess staffing tied to the film slate.
    • In the company's earnings call, CEO Jeffrey Katzenberg said “While there is still much work to be done, I’m really proud of what our team has accomplished this quarter."
    • Press Release
    | Tue, Aug. 4, 5:41 PM | Comment!
  • Fri, Jun. 12, 5:37 PM
    | Fri, Jun. 12, 5:37 PM | Comment!
  • Wed, Jun. 10, 3:55 PM
    • DreamWorks Animation (NASDAQ:DWA) is 4.9% lower today after two firms launched coverage on the studio with Sell ratings.
    • Credit Agricole initiated DreamWorks at Sell, with a $17 price target. CLSA also started coverage at the same rating and $17 price target.
    • Shares are trading today at $26.46, its lowest point this month and 11% down from the 15-month high it hit last Friday on a bullish upgrade from Stifel Nicolaus.
    | Wed, Jun. 10, 3:55 PM | 3 Comments
  • Fri, Jun. 5, 10:59 AM
    • DreamWorks Animation (NASDAQ:DWA) is up 7.2% and has reached its highest price since February 2014 as Stifel Nicolaus upgrades the shares to Buy after an "exceptionally candid" meeting with management.
    • The analyst firm has set a price target of $34. Shares are trading today at $29.47.
    • Stifel's Benjamin Mogil says the firm came away from the meetings "more positive" after hearing about how DWA management was pivoting after problems of the last few years on movie creativity.
    • DreamWorks' film plans are "more realistic/in-tune," Stifel notes, since "2012-2014 film challenges were tied to films which skewed older right as the box office began to see changes whereby animation demand was increasingly skewing younger as kids began to age out of the genre earlier."
    • The studio's TV segment was thought to decline in 2017 after peaking next year, but Stifel now sees that output deals could get extended. For consumer products: "Far more of the revenue target for the year is not tied to feature films, which grants us more comfort with the target's attainability."
    | Fri, Jun. 5, 10:59 AM | Comment!
  • Mon, Apr. 6, 10:59 AM
    • Furious 7 exceeded all expectations and smashed an April box-office record with a $143.6M weekend -- and big international receipts of $204.4M (from 10,500 screens in 63 territories) point to a massive winner for Universal (CMCSA +0.5%).
    • Notably for a sequel -- where follow-ups usually do a fraction of the first film's business -- the newest entry got the biggest opening weekend of the seven-film series. And it has a relatively clear path to hundreds of millions more before May 1 brings the competition of a new Avengers.
    • Home, the sole 2015 release from DreamWorks Animation (DWA +1.7%), held up well in its second weekend with $27.4M, for a two-week total of $95.6M.
    • Will Ferrell-Kevin Hart comedy Get Hard (NYSE:TWX) took third place with $12.9M ($57M total gross), while Cinderella (DIS; $10.3M; $167.3M total) and Insurgent (LGF; $10M; $103.4M total) were fourth and fifth.
    • Previously: Box office sales and in-theater spending trending strong (Apr. 05 2015)
    • Previously: Holiday movie weekend: Universal to get 'Furious' opening (Apr. 03 2015)
    | Mon, Apr. 6, 10:59 AM | 1 Comment
  • Mon, Mar. 30, 9:52 AM
    • DreamWorks Animation (NASDAQ:DWA) is up 8.2% after Home -- its only film release for 2015 -- led the weekend box office and beat its own expectations with $54M, the company's third-largest non-sequel opening.
    • Following a series of flops for DWA, the film was expected to draw about $30M-$35M.
    • Home is another standout child-focused success in a year filled with adult fare so far. R-rated prison comedy Get Hard (NYSE:TWX) took the No. 2 spot, drawing $34.6M.
    • Insurgent (NYSE:LGF) and Cinderella (NYSE:DIS) followed those two, adding to their considerable takes with $22M and $17.5M respectively. New foreign markets joined Cinderella, pushing it to more than $300M globally, and Insurgent has made $180M worldwide.
    • Kingsman: The Secret Service is a hit with legs for Twenty-First Century Fox (NASDAQ:FOXA), plugging away at sixth place this week (its seventh) with $3M, and passing $300M globally.
    • Previously: DreamWorks up 7.7%, on two-day surge as planning takes shape (Mar. 04 2015)
    | Mon, Mar. 30, 9:52 AM | 5 Comments
  • Wed, Mar. 11, 12:51 PM
    • DreamWorks Animation (NASDAQ:DWA) is up 2.3% as Verizon (NYSE:VZ) seals a deal to add 200 hours of original video content to its upcoming video service from DWA's AwesomenessTV and DreamWorksTV, targeting teens and young millennials with over-the-top video.
    • The programming will include scripted and unscripted series as well as DreamWorks original characters.
    • AwesomenessTV, acquired by DreamWorks in 2013, features 7B views and 112M subscribers.
    • The deal will take some pressure off what some, like BTIG's Richard Greenfield, see as a heavy dependence on Netflix.
    | Wed, Mar. 11, 12:51 PM | Comment!
  • Wed, Mar. 4, 8:45 PM
    • DreamWorks Animation's (NASDAQ:DWA) Chinese joint venture is "incredibly important" to the troubled company, CFO Fazal Merchant said today as attention turns from a rough Q4 to the next two years for the studio.
    • Thanks to co-founder Jeffrey Katzenberg's frequent visits to China, they're in a "blessed place" with Oriental DreamWorks, the partnership the studio formed with China Media Capital, Shanghai Media Group and Shanghai Alliance Investment to create family-friendly content.
    • The venture's first project, Kung Fu Panda 3, is due in 2016. The first two films in the Kung Fu Panda series drew worldwide grosses of $632M and $665M respectively, off production budgets of $130M-$150M.
    • Merchant was speaking at Morgan Stanley's Technology, Media & Telecom Conference and also proclaimed Netflix (NASDAQ:NFLX) "incredibly pleased" with their deal through 2017 (a good thing if DWA is as dependent on the streamer as rumored). "If there were issues, I don't think they'd be shy about telling us."
    • Shares finished the day up 5.7%.
    • Earlier: DreamWorks up 7.7%, on two-day surge as planning takes shape (Mar. 04 2015)
    • Previously: DreamWorks rallies -- but too dependent on Netflix? (Feb. 25 2015)
    • Previously: DreamWorks pummeled after brutal quarter; rough year ahead (Feb. 24 2015)
    | Wed, Mar. 4, 8:45 PM | Comment!
  • Wed, Mar. 4, 3:20 PM
    • DreamWorks Animation (NASDAQ:DWA) is surging toward the close, up 7.7% now (and +10.9% since Monday).
    • The stock's been swimming in bad news after an awful quarter, but investors may be beginning to listen to chief Jeffrey Katzenberg, who says he's re-focusing on the core film business after some distractions in TV, consumer products and digital.
    • He expects the company to break even this year, however. The way forward for the company's divisions is varied and all depends on some extent to making hit movies again.
    • In that case, Cowen's Doug Creutz is still skeptical: "In the near-term, we think the trailers for Home are among the least appealing we have seen from the company," he says, adding most long-term changes won't hit until 2016 or later. Home, coming out this month, is DWA's only scheduled release for 2015.
    • Previously: DreamWorks to sell campus HQ to SunTrust unit (Feb. 26 2015)
    • Previously: DreamWorks pummeled after brutal quarter; rough year ahead (Feb. 24 2015)
    | Wed, Mar. 4, 3:20 PM | Comment!
  • Wed, Feb. 25, 7:11 PM
    • Despite an after-hours selloff Tuesday on a tough Q4 report, DreamWorks Animation (NASDAQ:DWA) ended today up 5.9% on more than double average volume.
    • Is it possible the worst is behind the studio? The company addressed short-term liquidity issues, using their call to detail its increased revolver and the $185M sale of its headquarters, and the reshuffled leadership is giving some hope to those expecting a refocus on core creative work.
    • There are still key challenges ahead even if restructuring goes well: Aside from the one release coming this year, BTIG's Richard Greenfield notes the firm may be way too dependent on Netflix -- "the only thing keeping DreamWorks solvent."
    • "DreamWorks filed an 8-K this morning revising their answer to our question admitting that Netflix represented nearly 15% of DreamWorks’ revenues in 2014, which equates to $102M ... Given the increased cadence of television series DreamWorks Animation will deliver to Netflix in 2015, it is not hard to imagine Netflix’s share of DreamWorks’s revenues rising" materially above that.
    • Complicating matters, Greenfield thinks the quality of content that DWA is sending Netflix is poor.
    | Wed, Feb. 25, 7:11 PM | 4 Comments
  • Tue, Feb. 24, 8:39 PM
    • On its Q4 earnings call, DreamWorks Animation (NASDAQ:DWA) filled in some details on a tough quarter -- one which saw them lose almost a quarter of a million dollars, pre-announce a heavy writedown on The Penguins of Madagascar and two unreleased projects, prepare layoffs of 500 workers, and cut its film production schedule to two films a year instead of three.
    • Shares were down 8.7% in late trading.
    • Though the plans are to make two movies a year, the studio has just one slated for the "transitional year" of 2015: alien-relocation comedy Home, and it comes out March 27. It's budgeted in the $135M range, while the studio is generally aiming for $120M budgets.
    • CEO Jeffrey Katzenberg reshuffled execs, tapping veteran producers Bonnie Arnold and Mireille Soria to lead feature animation, and will take the opportunity to get personally re-engaged with the creative side of the company: "Returning to a much much more active participating role ... has been the silver lining for me" after "without a question, the hardest, most difficult, most painful eight weeks in our 20-year history."
    • Saying it's better to get liquidity when you don't need it, the company increased its revolving credit facility to $450M from $400M and extended its term to February 2020.
    • The studio also is selling its Glendale headquarters and will enter into a leaseback arrangement for $185M.
    • Previously: DreamWorks still lower in wake of heavy layoffs (Jan. 28 2015)
    • Previously: DreamWorks Animation confirms layoffs (Jan. 23 2015)
    | Tue, Feb. 24, 8:39 PM | 3 Comments
  • Tue, Feb. 24, 5:39 PM
    • Top gainers, as of 5:15 p.m.: BNFT +30.0%. RUBI +13.2%. ZAGG +9.9%. NKTR +9.4%. FLTX +7.4%.
    • Top losers, as of 5:15 p.m.: SLCA -11.7%. LC -10.7%. DWA -9.1%. SAM -8.0%. HPQ -6.5%.
    | Tue, Feb. 24, 5:39 PM | 7 Comments
  • Wed, Jan. 28, 3:39 PM
    • DreamWorks Animation (NASDAQ:DWA) is off 6% -- trading lower for the second day in a row, and down 15.6% since its announcement of layoffs and a smaller film slate.
    • The studio said it would lay off 18% of its workforce and concentrate on just two films a year instead of three (only one film, Home, is set for 2015).
    • In the wake of some box-office disappointments, CEO Jeffrey Katzenberg says it's time for him to focus more on the studio's core filmmaking business.
    • Not all outlooks are grim; along with Piper Jaffray's upgrade, B. Riley has upgraded the stock to Buy, and The Hollywood Reporter notes the studio can draw $250M in credit if needed, along with selling unencumbered assets like its Glendale, Calif., campus for hundreds of millions more.
    • Shares are off 44% in the past year.
    | Wed, Jan. 28, 3:39 PM | Comment!
Company Description
Dreamworks Animation SKG Inc creates and exploits family entertainment, including animated feature films, television series and specials, live entertainment properties and related consumer products.