DreamWorks Animation Sees Some Extra Green

Stronger than expected DVD sales for Over the Hedge and TV revenue from other library titles helped DreamWorks Animation exceed Wall Street's profit and revenue expectations, according to Reuters. The company reported a net income of $15.4 million, compared to $12.3 million this quarter last year. Revenue was up almost 55 percent to $93.7 million compared to $60.1 million in the year-ago quarter. DreamWorks CEO Jeffrey Katzenberg called the quarterly results "solid" and said the upcoming film slate--which includes Shrek the Third--would help the company overcome the past three years of spotty results. "I believe we are entering a new chapter for DreamWorks Animation," he told analysts. Stock price has been up because of anticipation for the latest installment of the Shrek franchise, but Katzenberg described its May 18th release date as "not ideal" because it lands between Spider-Man 3 and Pirates of the Caribbean: At World's End. However, Katzenberg did say that he's "confident there is enough capacity in the market for each film to be successful." According to the article, "Prudential Equity Group analyst Katherine Styponias said in a note to clients that Shrek the Third should gross $60 million to $75 million on its opening weekend and would remain the catalyst for DreamWorks shares for the next few weeks."