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Wednesday April 16, 2014

Finances

Finances
 

DreamWorks Animation Reports Quarterly Earnings

DreamWorks Animation SKG, Inc. (DWA), a developer and producer of animated films, reported its quarterly earnings on April 30.

DreamWorks reported revenue of $134.65 million for the first quarter of 2013. This represents a decrease from the same period last year when the company reported revenue of $136.08 million.

The company reported net income of $6.11 million for the quarter. This represents a decrease from the first quarter of 2012 when the company reported net income of $9.07 million.

"This year is off to an outstanding start for DreamWorks Animation," said Jeffrey Katzenberg, CEO of DreamWorks Animation. "The Croods has reached a blockbuster level of nearly $480 million at the worldwide box office and is well on its way to becoming the number one movie released during the first four months of 2013. I'd like to congratulate and thank our new distribution partners at Twentieth Century Fox for helping to propel The Croods to global success and we now look forward to launching our summer tentpole, Turbo, in theaters on July 17th."

DreamWorks Animation was founded in 1985 in Glendale, California. The company is responsible for many animated films including Shrek, Madagascar and Rise of the Guardians.

DreamWorks Animation SKG, Inc. (DWA) shares ended the week at $21.30.

Kellogg Reports Quarterly Earnings


Kellogg Company (K), a manufacturer of cereal and convenience food, reported its quarterly earnings on May 2.

The company reported net sales of $3.86 billion for the quarter. This represents an increase from the first quarter of 2012 when the company reported net sales of $3.44 billion.

The company reported quarterly net income of $311 million. This represents a decrease from the same period last year when the company reported net income of $351 million.

"Results in the first quarter were broadly as we expected, and we're pleased to have a solid start to the year," said John Bryant, Kellogg Company President and CEO. "We saw good comparable revenue growth in many regions around the world and the Pringles business continued to post strong results. As a result, we're also pleased to report that we're on track to meet our guidance for the full-year."

Kellogg Company was founded in 1906 in Battle Creek, Michigan. The company has over 31,000 full-time employees.

Kellogg Company (K) shares ended the week at $63.66.

Facebook Reports Quarterly Earnings


Facebook, Inc. (FB) reported its quarterly earnings on May 1.

The company reported revenue of $1.46 billion for the first quarter of 2013. This represents an increase from the same period last year when the company reported revenue of $1.06 billion.

The company reported net income of $219 million for the quarter. This represents an increase from the first quarter of 2012 when the company reported net income of $205 million.

"We made a lot of progress in the first few months of the year," said Mark Zuckerberg, Facebook founder and CEO. "We have seen strong growth and engagement across our community and launched several exciting products."

As of December 31, 2012, Facebook had 1.06 billion monthly active users and 618 million daily active users. The company is headquartered in Menlo Park, California.

Facebook, Inc. (FB) shares ended the week at $28.31.

The Dow started the week at 14,713 and closed at 14,974. The S&P 500 started the week at 1,582 and closed at 1,614. The NASDAQ started the week at 3,279 and closed at 3,379.
 

Yields Rise upon Release of Employment Data

Treasuries gained and yields fell early last week as manufacturing data was weaker than expected. Also, the European Central Bank cut its key interest rate from 0.75% to 0.5% on May 2. This news led investors to seek the security of U.S. government bonds.

The Institute for Supply Management (ISM) released its index of national factory activity on May 1, which fell from 54.2 in February to 51.3. A reading above 50 indicates expansion in the manufacturing sector. "The weaker than expected ISM manufacturing report was really the big bullish trigger for today's session," said Ian Lyngen, a senior government bond strategist at CRT Capital Group in Stamford, Connecticut.

After the manufacturing numbers were released the benchmark 10-year note fell to 1.61% on May 1, the lowest since December 11, 2012. On May 2, the yield rose slightly to 1.63% in afternoon trading.


As much as the data released at the beginning of the week caused yields to fall, the employment numbers released at the end of last week were better than expected causing Treasuries to fall and yields to rise.

The number of applications for unemployment benefits fell 18,000 to 324,000 during the week ending April 27. This is the fewest since January 2008. The economy also added 165,000 jobs in April and the numbers for March were revised up to 138,000 jobs added. The number of jobs added in April was larger than expected and was enough to cause the unemployment rate to fall from 7.6% to 7.5%, the lowest since December 2008.

Upon the release of the employment figures, the benchmark 10-year yield rose to 1.7% in early Friday trading. While the drop in the unemployment rate is positive, there is still quite a way to go to reach the Federal Reserve's goal of 6.5%. "It's an improvement, but not a game changer," said Richard Schlanger, Vice President of Pioneer Investments in Boston. "We're going to continue to drift in this range."

The 10-year Treasury note yield finished the week at 1.75% while the 30-year Treasury note yield finished the week at 2.97%.
 

Interest Rates Continue to Decline

Freddie Mac released the results of its weekly Primary Mortgage Market Survey (PMMS) on May 2. The results show average fixed mortgage rates declining for a fifth consecutive week.

The 30-year fixed rate mortgage averaged 3.35% this week. This represents a decrease from last week when it averaged 3.4%. One year ago at this time, the 30-year fixed rate mortgage averaged 3.84%.

The 15-year fixed rate mortgage averaged 2.56% this week. This represents a decrease from last week when it averaged 2.61%. Last year at this time, the 15-year fixed rate mortgage averaged 3.07%.

"Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5% but fell short of the market consensus forecast," said Frank Nothaft, Vice President and Chief Economist at Freddie Mac. "The latest GDP report confirmed that the housing sector has become an important contributor to the economic recovery. Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Moreover, near record low mortgage rates should further drive the housing market recovery over the near term."

The money market fund finished this week at 0.5%. The 1-year CD finished at 0.5%.

Published May 3, 2013


Previous Articles

Apple Reports Second Quarter Results

Google Reports Quarterly Earnings

Bed Bath & Beyond Reports Fiscal 2012 Results

JoS. A Bank Reports Annual Earnings

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