DreamWorks Animation 1st-Q Ups Profit
Goldman Sachs has just issued a “Buy” (from “Neutral”) on DreamWorks Animation and expects the stock price to hit $27. Meanwhile, the company’s share price rose today to $23.93 after beating the street estimates with its best 1st-Quarter performance and more than doubled profits. Better-than-expected theatrical and home video sales from Madagascar: Escape 2 Africa were cited as the principal reason. The good news for the company follows Jeffrey Katzenberg’s announcement that he’s renewed his contract to stick around as topper through 2013. He will continue to draw an annual salary of $1 but now gets 2 sets of stock options with a combined value of $14M.