DreamWorks Animation, the creator of "How To Train Your Dragon" and "The Croods," reported strong Q3 results, with an increase on revenue that had exceeded analysts' forecast on Thursday.
Analysts were reportedly looking a revenue of $201 million, but the company got a 43.3 percent growth year over year to $259.2 million, according to the report of The Street. The presented number was for the three months, which ended on Sept. 30.
DreamWorks Animation shares also increased by 12.57 percent to $20.21, during the after-hours trading on the same day the Q3 results were reported. The company, additionally, reported adjusted earnings of two cents per share for the recent quarter.
DreamsWorks Animation Chief Executive Officer Jeffrey Katzenberg said that the strong results highlighted the earnings potential of the company.
Amid the growing competition in the film of animation, the company cut some jobs and reduced production to one film this year. Other than the 500 layoffs, and a "scaled-back" movie slate, Katzenberg also announced the sale of the studio's Glendale campus for $215 million in January as part of the corporate restructuring, as per The Hollywood Reporter.
DreamWorks Animation's revenue for film segment went up from $142 million year-over-year to $158 million. Meanwhile, the quarterly revenue for its television segment reportedly soared to $50.7 million from $14.3 million during the same period in 2014.
The strong performance of Tim Johnson's "Home," which featured the voices of Jim Parsons, Rihanna, Steve Martin and Jennifer Lopez, in home entertainment platforms reportedly helped in driving this satisfactory quarterly result.
The film sold 4.7 million copies and contributed $49.7 million. Katzenberg reportedly said that the movie had the most number of digital units sold than any of DreamWorks Animation sales transactions.
"Home" hit the theaters in March, but since then, the company hasn't released any films. Its next film, "Kung Fu Panda 3," will premiere in January.
Meanwhile, DreamWorks Animation's multi-series deal with Netflix can reportedly help them achieve their $250 million full-year revenue goal, according to the analysts from Bloomberg Intelligence.
"[Netflix] has been an incredible partner to us, and we value that in an incredible way and we're constantly in conversations with them about things we can incrementally do together in both the near term and the long term," Katzenberg said during a call.
It's been quite a year for DreamWorks Animation. The company is now enjoying the results of its labor, but the company's CEO said that they still have considerable work ahead of them.
The DreamWorks Animation boss also said that he was proud of the work the team had done.
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