Will These Numbers from DreamWorks Animation SKG Be Good Enough for You?

DreamWorks Animation SKG (Nasdaq: DWA  ) is expected to report Q4 earnings on Feb. 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DreamWorks Animation SKG's revenues will decrease -2.6% and EPS will shrink to a loss.

The average estimate for revenue is $213.2 million. On the bottom line, the average EPS estimate is -$0.03.

Revenue details
Last quarter, DreamWorks Animation SKG notched revenue of $186.3 million. GAAP reported sales were 16% higher than the prior-year quarter's $160.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.29. GAAP EPS of $0.29 for Q3 were 26% higher than the prior-year quarter's $0.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 38.8%, 600 basis points better than the prior-year quarter. Operating margin was 18.6%, 290 basis points better than the prior-year quarter. Net margin was 13.1%, 90 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $699.6 million. The average EPS estimate is $0.54.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,106 members out of 1,180 rating the stock outperform, and 74 members rating it underperform. Among 328 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 311 give DreamWorks Animation SKG a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DreamWorks Animation SKG is hold, with an average price target of $17.85.

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