DreamWorks Animation Shares Pop On Encouraging Report For ‘The Croods’

The stock rose 8.4% today after Stifel analyst Benjamin Mogil upgraded his recommendation to “hold”  — mostly due to his view that The Croods will generate solid box office sales after its March 21 opening. His tracking suggests that domestic ticket buyers will spend $50M on the DreamWorks Animation film in its opening weekend, which could propel it to total theatrical sales of $150M. That’s a little below Wall Street’s expectation for $160M. But investors may be pleasantly surprised by international sales. Croods will be “the first new film under the Fox distribution deal,” he says, and the News Corp-owned studio is especially strong overseas. Mogil forecasts $300M in international box office sales. If he’s right then investors’ fear that DreamWorks Animation will be hit with a second consecutive disappointment after Rise Of The Guardians will have “largely played itself out.” Indeed, he says that CEO Jeff Katzenberg’s $87M write-down for the Christmas release was “kitchen-sink in depth” which means it could “actually generate some marginal contribution” to the bottom line. (more…)

This article was printed from https://deadline.com/2013/03/dreamworks-animation-croods-stock-price-expectations-452977/