The holiday film appears to be a bigger disappointment than Lazard Capital Markets’ Barton Crockett imagined just a few weeks ago. He says today that he expects the studio to take a $96M write-down — more than double the $45M he predicted in mid-December, and close to the $109M that DreamWorks Animation took in 2006 for Flushed Away. Crockett now forecasts that the company will report a 44 cents-per-share loss for Q4, down from his previous prediction of a 6 cent loss. Crockett says that Rise Of The Guardians likely will end up generating $110M at domestic box offices and $210M overseas vs. his previous forecast for $130M and $276M, respectively. “While bulls will want to look past this write-off, the risk is that a second flop like Guardians could dramatically change sentiment,” he says. DreamWorks Animation shares are down about 2% in mid-afternoon trading, and more than 26% since early November.
How Much Will DreamWorks Animation Write Off For ‘Rise Of The Guardians’?
What's Hot on Deadline
'Straight Outta Compton' Battles For Fourpeat Against Ever Faithful 'War Room' Audience In Lackluster Weekend