DreamWorks Animation Shares To Drop After ‘Guardians’ Box Office Disappoints

DreamWorks Animation shares are down 3.1% to $17.49 in jumpy pre-market trading this morning after Rise Of The Guardians‘ $32.6M domestic box office for the five-day Thanksgiving holiday made it, in Janney Capital Markets’ Tony Wible’s words, “one of the most disappointing releases in the company’s history.” If the pre-market stock price holds, then DreamWorks Animation would be down nearly 24% from November 2 when it hit a 52-week high of $22.98 — partly driven by analysts’ optimistic expectations for Guardians. Wible expected to see $55M over Thanksgiving, slightly less than the consensus forecast among analysts for $58M. He now predicts it will generate $134M domestically (down from his earlier forecast for $225M) and $312M internationally (down from $338M). He also cut his earnings-per-share estimates for the company by 71% to 25 cents for 2012, and by 9% to 79 cents for 2013, although he maintained his “buy” recommendation based on DWA’s other initiatives. “Parent review sites noted several dark moments, which may have kept younger viewers away” from Guardians, he says. “However, we still struggle to understand why audiences rejected the film.” (more…)

This article was printed from https://deadline.com/2012/11/dreamworks-animation-stock-rise-guardians-opening-box-office-376834/