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DreamWorks News: 'Madagascar' Helps DreamWorks Animation
Mar 09, 2006 - 04:41 AM
"SG Cowen research analyst Lowell Singer raised estimates for DreamWorks Animation based on the potential of recent and upcoming titles.

""We believe that Madagascar's home video performance should drive fiscal 2005 earnings in line with our estimate of 83 cents,"" wrote the analyst in a report Wednesday.

Singer maintained his fourth-quarter ""Madagascar"" home video unit estimate of 15 million but raised his lifetime home video unit estimate to 29 million from 26 million to reflect increased out-year sales upon the release of ""Madagascar 2.""

Looking ahead, the analyst raised his domestic box office estimates for ""Over The Hedge"" and ""Bee Movie"" due to ""increased confidence"" in the films. He also raised his estimated international-to-domestic box office ratio for all future films to reflect the better-than-expected international performances of ""Shark Tale"" and ""Madagascar.""

Singer consequently increased his fiscal 2006 estimates for DreamWorks Animation (nyse: DWA - news - people ) to earnings of 66 cents per share on revenue of $406.7 million, from 31 cents on revenue of $324.7 million.

However, he lowered his box office-to-home video conversion ratios for all future films to better reflect the performances of DreamWorks' films in the home video window.

Forbes"

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