DVD sales of “How to Train Your Dragon” and a tax benefit helped double DreamWorks Animation SKG Inc.‘s fourth-quarter profit, the studio behind the Shrek movies announced Thursday.
Net income rose to $85.2 million (99 cents a share) from $43.6 million (50 cents) the previous year. With the exception of some items, analysts had expected profit of 73 cents a share, the average of 12 estimates compiled by Bloomberg.
Sales jumped 42% percent to $275.7 million, although 11 analysts’ estimates compiled by Bloomberg thought that they would reach $291.7 million.
The tax credit added $45 million (52 cents) to earnings, DreamWorks Animation said.
DWA repurchased 3.1 million of its shares for about $111 million over the year, said a statement from the studio. The Glendale, California-based company has $150 million left under its current authorization.
Home-video sales helped to offset a weak performance at the box office, although Megamind — which was released Friday on DVD — won’t be a major contributor to the current quarter, DWA said.
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