DreamWorks Falls Short of Q4 Estimates

DreamWorks Animation posted lower-than-expected profits for the fourth quarter of 2008.

This quarter saw the studio put out the theatrical release Madagascar: Escape 2 Africa and the DVD of its summer hit Kung Fu Panda, which has sold about 11 million copies to date.

Times were tough, however, compared to the same quarter last year, when Shrek the Third did big business on DVD. The studio posted income for the quarter of $51.6 million, compared with $94.1 million in the same quarter of 2007. Revenues also declined to $199.8 million, short of the $232 million expected by analysts, according to Reuters.

Up next for the studio is Monsters vs. Aliens, its first 3-D feature, due out March 27.