Can’t say that the studio had a good quarter, but Wall Street is all about expectations and on that score it looks OK with shares up 7.8% post market. DreamWorks Animation generated $10M in net income, down 58.8% compared with last year, on revenues of $154.5M, -17%. Analysts expected revenues to come in at $140.3M. Earnings at 12 cents a share also beat expectations for a penny. The company says it will begin to report its numbers for four segments: feature films, TV series and specials, consumer products, and other. The feature film unit generated $120.7M in revenue and $55.4M in gross profit. Library titles contributed the most, with $52.2M in revenues. Rise Of The Guardians came next with $42.4M, mostly from worldwide pay TV. Madagascar 3: Europe’s Most Wanted kicked in $10.9M, followed by the summer release Turbo with $6.4M, and 2011′s Puss In Boots with $4.8M. The TV operation had $18.2M in revenue and a $4.2M gross profit, which the company says came mostly from Classic Media content and Cartoon Network’s DreamWorks Dragons: Riders Of Berk.
Investors who are shocked today by Best Buy’s miserable performance in the quarter that ended in August should take a fresh look at Bernstein Research analyst Craig Moffett’s important studies of what he refers to as the media industry’s “looming affordability crisis.” A report out today, synthesizing some of his recent research, notes that once the poorest 40% of the population pays for food, shelter, transportation, and health care “there is nothing left for clothing…for debt service…for cable…or for phone.” If the government cuts entitlement programs then it would “have a profound impact on spending patterns,” Moffett says, that would lead the media industry into “uncharted waters.”