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Stock Market & Financial Investment News

News Breaks
July 30, 2014
11:42 EDTDWADreamWorks falls after Q2 results miss, SEC probe disclosed
Shares of animated film-maker DreamWorks Animation (DWA) are tumbling after the company reported worse than expected second quarter financial results and revealed that the SEC is investigating its 2013 writedown on the movie "Turbo." WHAT'S NEW: DreamWorks Animation experienced a Q2 earnings per share loss of (18c), while analysts were expecting a loss of (2c). The company's Q2 revenue was $122.3M, which was below analysts' consensus of $137.86M. WHAT'S NOTABLE: During the company's conference call, DreamWorks said the SEC is investigating its 2013 writedown on the movie "Turbo," but noted that it is cooperating with the probe. Looking ahead, the company says that the continued performance of "How to Train Your Dragon 2" at worldwide box offices is expected to be the primary driver of its Q3 results. Significant events for Q4 include the theatrical release of the "Penguins of Madagascar " on November 26, as well as its home video/home entertainment release of both "Mr. Peabody & Sherman" and "Dragon 2." The company called 2014 an "investment year," as it is aiming to continue investing "heavily" in each of its areas of growth and expects its spending to continue during the second half and into next year. Commenting on to its Television unit, DreamWorks says it remains on track to debut 3 new series in the second half of the year and 7 new series in 2015. The company continues to expect that its 2015 television revenue will exceed $250M and that its profit margin for this segment will approach 30% as it ramp up production and delivery. ANALYST OPINION: Piper Jaffray analyst James Marsh is maintaining his Neutral rating on the shares as he expects the stock to continue to trade "sideways" until better perspective on the company's diversification efforts become evident. Marsh said he expects DreamWorks' investment spending and the SEC probe into the company's "Turbo" writedown will pressure shares. He said that he isn't certain about the nature of the investigation beyond the few remarks from management on the company's call, but based on what he knows at the moment, Marsh said that he doesn't see any big issues stemming from the probe. PRICE ACTION: During late-morning trading, shares of DreamWorks fell $3.15, or 14%, to $19.51.
News For DWA From The Last 14 Days
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April 19, 2015
17:43 EDTDWADreamWorks CEO downplays Chinese takeover speculation, Variety says
In an interview with Variety at the Beijing International Film Festival, DreamWorks (DWA) CEO Jeffrey Katzenberg said he does not believe the company is headed towards a takeover by a Chinese firm. "We are a minority owner in a joint venture here, and I think that is the most successful structure to do business here in China today... We’re very comfortable with that arrangement," said Katzenberg. Variety notes that there was speculation late last year of takeover talks with Alibaba (BABA) or Wanda. Reference Link

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