DreamWorks Animation SKG Inc.’s (DWA - Analyst Report) first-quarter 2015 loss (excluding a $31.9 million pre-tax restructuring charge) of 25 cents per share was narrower than the Zacks Consensus Estimate of a loss of 49 cents. However, adjusted loss widened from  the year-ago quarter’s loss of 7 cents. Including special items, the company incurred a loss of 64 cents in the first quarter of 2015, wider than the year-ago loss of 51 cents per share.

Quarterly revenues climbed 13.1% year over year to $166.5 million but missed the Zacks Consensus Estimate of $174 million. Segment-wise, Feature Film revenues climbed 16.3% to $128 million, revenues from the Television Series and Specials unit were flat at $18 million while Consumer Products revenues improved 24.8% to $15.1 million. New Media Segment reported revenues of $4.6 million in the first quarter of 2015.

The Feature Film unit was profitable in the reported quarter and turned around with profits of $41 million as opposed to a the year-earlier quarter’s loss of $25 million. Segmental performance in the first reported quarter of 2015 was aided by increased worldwide home entertainment sales of How to Train Your Dragon 2 and Turbo.

However, segmental results in the year-ago quarter were had been hurt by a $57.1 million impairment charge pertaining to the theatrical release of Mr. Peabody and & Sherman. Profit at the Television Series and Specials unit declined 39.6% to $3.5 million due to higher marketing costs incurred in the first reported quarter of 2015. Profits from the Consumer Products division increased marginally to $6.5 million due to increased revenues. The New Media segment made a profit of $2.1 million in the first quarter of 2015 as opposed to a loss of $0.1 million a year ago.

Selling and marketing expenses amounted to $8.5 million in the first quarter of 2015, up 35.3% year over year while general and administrative expenses jumped 86.8% to $89.1 million. General and administrative expenses climbed 20% to $57 million in the quarter, excluding the restructuring impact. This increase was primarily due to costs associated with the expansion of the AwesomenessTV operation. Awesomeness TV was had been acquired by DreamWorks in 2013.

At the end of the reported quarter under review, the company had $89.7 million of cash and cash equivalents and no outstanding debt as against $34.2 million of cash and cash equivalents and no zero outstanding debt at the end of 2014.

DreamWorks’ first- quarter 2015 results comes close on the heels of the deal signed by Google Inc.’s (GOOGL - Analyst Report) video-sharing site YouTube and DreamWorks’ AwesomenessTV to release several feature films on the website over the coming next two years. The films will be premiered across the globe on YouTube before they are made available elsewhere. The first film is expected to be released this fall.

Zacks Rank

DreamWorks carries a Zacks Rank #3 (Hold). Better-ranked stocks  include Apple (AAPL - Analyst Report) and Tribune Media Co. (TRCO - Snapshot Report), each with a Zacks Rank #2 (Buy).