Diamonds and Dogs
We all have dreams, and today's diamond makes those dreams a reality. DreamWorks Animation (DWA) is jumping over 20% after easily beating earnings estimates last night. Thanks to a shift in strategy, DreamWorks earnings and sales are moving in the right direction. The company is focusing on growing its TV business, focusing on home-video releases and making shows for Netflix, including "Dragons: Race to the Edge" and "Dinotrux." Its only 2015 theatrical release, "Home," contributed $55.3 million in revenue to the feature film segment. The new release, Kung Fu Panda is off to a good start in 2016. Maybe this is what is needed to bring the company back to where it used to be in 2014 when the price peaked around $35 a share.
Mardi Gras is happening right now but it's not helping today's Dog, Popeye's Louisiana Kitchen (PLKI). The stock dropped 5% after beating earnings estimates, but missing revenue estimates. The main culprit for today's weakness was due to the company's outlook. Earnings for 2016 are now expected to be between $2.10-$2.15 a share which is considerably lower compared to analyst expectations of $2.25-2.69 a share. The Atlanta based company isn't slowing down. They are aiming to increase restaurant locations by 60% over the next several years.
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