Earnings Roundup

A scene from DreamWorks' summer hit, ''Kung Fu Panda.'' The movie contributed $63.3 million to the California firm's quarterly revenue, mostly from international box office receipts. (DreamWorks Animation SKG Inc. via Associated Press)

Sepracor Inc. said its third-quarter profit fell 51 percent, dragged down by higher operating expenses.

The Marlborough pharmaceutical company reported earnings slid to $19.4 million, or 17 cents per share, compared with $39.7 million, or 34 cents per share, in the previous year.

Excluding an income tax benefit and other items, net income declined to $12 million, or 10 cents per share, from $39.7 million, or 34 cents per share.

Revenue for the period ended Sept. 30 rose to $307.7 million, up 10 percent from $280.8 million a year ago.

Analysts predicted a profit of 14 cents per share on sales of $292.3 million, according to a Thomson Reuters poll. Estimates typically exclude one-time items.

Operating expenses climbed 20 percent to $268.7 million from $224.2 million as selling, general, and administrative costs grew 17 percent to $204 million. Research and development costs increased to $63 million from $49 million. (AP)

DreamWorks Animation SKG Inc. said its third-quarter profit fell 21 percent as revenue slipped despite the strong performance of "Kung Fu Panda," but the results topped Wall Street's expectations and shares jumped in after-hours trading.

DreamWorks also said that David Geffen, who cofounded DreamWorks SKG with Steven Spielberg, and Jeffrey Katzenberg, is stepping down from the board. In a conference call with investors, Katzenberg said Geffen will continue to serve as a "trusted adviser" to the company.

For the quarter ended Sept. 30, earnings fell to $37.4 million, or 41 cents per share, from $47 million, or 47 cents per share, a year ago.

The Glendale, Calif.-based company noted that the results included a tax gain of 3 cents per share.

Revenue fell nearly 6 percent to $151.5 million, from $160.8 million in the third quarter of 2007.

Analysts polled by Thomson Reuters forecast third-quarter earnings of 32 cents per share on revenue of $130.4 million.

Selling, general, and administrative expenses jumped 25 percent to $29.9 million, due in part to higher stock compensation costs.

"Kung Fu Panda," a hit this summer, contributed $63.3 million to quarterly revenue, mostly from international box office receipts.

Also contributing to this year's third quarter was the company's 2007 summer blockbuster, "Shrek the Third," which brought in roughly $32.5 million, mostly through international pay television.

"Bee Movie," also released in 2007, contributed about $27.3 million to the third quarter this year. (AP)

Interpublic Group of Cos. Inc., the world's third largest advertising and marketing company, said third-quarter net income swung to a profit as revenue rose 11.5 percent with the addition of new clients and current customers expanded business.

But chief executive Michael Roth cautioned that there have been cancellations in the fourth quarter, with particular weakness in spending by financial services companies and automakers.

Internationally, Japan and Europe are seeing softness as well.

"We're seeing [the economic turmoil] beginning to weigh on marketers' plans for both the fourth quarter and 2009," Roth said in a conference call with analysts. The uncertainty "does create a risk to meeting our stated goals."

IPG expects its clients to keep shifting their spending from traditional advertising toward measurable online ads, as they face pressure to justify every marketing dollar spent.

The company survived the third quarter largely unscathed by the global economic crisis. IPG reported a net income of $38.7 million, or 8 cents per share, compared with a loss of $28.8 million, or 6 cents, in the year-ago period.

Its operating income more than doubled, hitting $116.3 million in the quarter, while operating costs fell by 7.6 percent.

Revenue rose to $1.74 billion from $1.56 billion, helped by acquisitions and a positive impact from foreign currency translation.

Excluding these external catalysts, organic growth was 7.6 percent.

Interpublic noted that the quarter received atypically large revenue from certain projects, which the company subcontracted out but counted the gross sales. This business amounted to 1.8 percent of overall revenue or around $30 million.

Results easily exceeded the projections of analysts polled by Thomson Reuters, who on average expected IPG to post profits of 6 cents per share on revenue of $1.65 billion.

Growth in the New York-based company's international revenue outpaced its US growth, at 15.3 percent versus 8.7 percent. (AP)

Banco Santander reported a 4.4 percent increase in third-quarter net profit on the back of steep cost cuts even as revenue growth was hurt by the financial crisis.

The euro zone's largest bank by market capitalization said net profit rose to $2.75 billion in the third quarter from $2.63 billion in the same period a year ago.

For the first nine months of 2007, net profit excluding capital gains totaled $8.64 billion, up 5.5 percent from $8.19 billion.

Banco Santander said in a statement that the global financial crisis and economic slowdown have resulted in slower growth in activity and an increase in nonperforming loans, which required greater provisions.

"These effects have been offset by managing prices to adapt to the situation and by stepped-up cost control, as revenues rose by 13 percent, four times higher than the 3 percent rate of growth in costs," the bank said.

The bank said its net profit in Latin America rose 6 percent to $2.7 billion in the first nine months of the year.

It noted that, while other banks have struggled during the current financial turmoil, Santander made three major acquisitions, buying Alliance & Leicester and the deposits and distribution channels of Bradford and Bingley's, both in Britain, and bidding for the capital it did not already own in Philadelphia-based Sovereign Bancorp in the United States. (AP)

Denny's Corp. saw its transition toward a more franchise-heavy business pay off, reporting its profit more than doubled in the third quarter.

For the quarter ended Sept. 24, the restaurant chain said its net income rose to $10.6 million, or 11 cents per share, up from $5 million, or 5 cents per share, during the prior year.

Analysts polled by Thomson Reuters expected the company to earn 7 cents per share for the quarter.

Denny's total operating revenue dropped more than 2 percent to $189.3 million.

Same-store sales - a key metric that measures sales in locations open at least a year - decreased 2.7 percent at company units and decreased 6.1 percent at franchised units.

The company said its restaurant sales decrease because of fewer company restaurants compared with the prior year.

Denny's has sold many of its corporate sites to franchisees under a previously announced initiative.

During the third quarter, Denny's closed one company restaurant and sold 21 to franchisee operators.

Nelson Marchioli, the president and chief executive of Spartanburg, S.C.-based Denny's, said, "We are pleased to report that our ongoing transition towards a franchise-based business model continued to drive core earnings growth in the third quarter."

He added that "despite disappointing sales results in the third quarter, we were able to deliver higher restaurant level cash flow, providing further support for our strategic direction." (AP)