Analysts Question Prospects For ‘Mr. Peabody & Sherman’ After DreamWorks Animation’s ‘Turbo’ Loss

DreamWorks Animation shares are down 13% in early trading this morning after last night’s disappointing Q4 report that included a $13.5M writedown for Turbo, a film that CEO Jeffrey Katzenberg previously said would be profitable. The weak performance added to analyst concerns that DreamWorks Animation’s Mr. Peabody & Sherman may also fall short of investor expectations after March 7 when it’s released in the U.S. Here’s the early line following last night’s report and conference call:

  • Sterne Agee’s Vasily Karasyov (“Underperform” rating on DWA with a price target of $17 a share): Peabody & Sherman‘s opening numbers in the UK and France “look soft while the production cost is $18M higher than that for Turbo, increasing the probability of another write-down,” he says. The film based on the classic TV animated characters will generate $160M at domestic box offices and $280M abroad, he projects, but after losses for Turbo and Rise Of The Guardians “the risk is squarely to the downside.”
  • Janney Capital Markets’ Tony Wible (Buy, fair value estimate $39): He projects $125M at U.S. box offices for P&S after a $25M opening weekend. Even so, (more…)

This article was printed from