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Dreamworks Animation SKG Inc (DWA)

  • 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.
  • 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, 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%.
  • 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.
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  • Fri, Jan. 23, 9:11 AM
  • Fri, Jan. 23, 7:26 AM
    • Cowen Research downgrades DreamWorks Animation (NASDAQ:DWA) to an Underperform rating after revisiting its thesis following the company's downsizing announcement.
    • Upside potential is limited, reasons Cowen.
    • Piper Jaffray takes the other of the trade, upgrading the studio stock to Overweight and assigning a $26 price target.
    • The take from Piper is that future writedowns are unlikely with DreamWorks already throwing in the kitchen sink.
    • Previously: Management shake-up at DreamWorks Animation (Jan. 05 2015)
    • Previously: DreamWorks Animation confirms layoffs (Jan. 23 2015)
    • DWA -1.45% premarket.
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  • Thu, Jan. 22, 5:36 PM
  • Dec. 1, 2014, 9:13 AM
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  • Nov. 26, 2014, 9:04 AM
    • Morgan Stanley steps in to Dreamworks (NASDAQ:DWA) - upgrading to Overweight a bit more than a week after the stock took a big dive on the apparent collapse of merger talks with Hasbro.
    • Shares +3.4% premarket
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  • Nov. 17, 2014, 12:47 PM
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  • Nov. 17, 2014, 9:15 AM
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  • Nov. 17, 2014, 7:52 AM
    • Shares of DreamWorks Animation (NASDAQ:DWA) dive in early trading after a potential merger with Hasbro appears to have fizzled out.
    • DWA -12.8% premarket.
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  • Nov. 13, 2014, 12:48 PM
  • Nov. 13, 2014, 9:10 AM
  • Oct. 29, 2014, 4:34 PM
    • DreamWorks Animation (NASDAQ:DWA) reports feature film revenue of $142.4M in Q3, with more than half of the tally coming from How to Train Your Dragon 2.
    • The company's Television segment recorded sales of $14.3M, while the Consumer Products business contributed $12.1M.
    • A lower SG&A expense ratio contributed to the beat on the bottom line for DreamWorks.
    • DWA +6.2% AH.
    | Comment!
  • Oct. 29, 2014, 4:19 PM
    • Dreamworks Animation (NASDAQ:DWA): Q3 EPS of $0.14 beats by $0.06.
    • Revenue of $180.86M (+17.0% Y/Y) misses by $1.79M.
    • Shares +3.91%.
    • Press Release
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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.