DreamWorks Animation Drops on ‘Guardians’ Sales Shortfall
DreamWorks Animation SKG Inc. (DWA) fell the most in almost four months after Caris & Co. downgraded the stock over “shockingly low” returns from the studio’s latest film, “Rise of The Guardians.”
The shares tumbled 5.2 percent to $17.11 at the close in New York, the steepest one-day drop since Aug. 1. The stock, which declined for the third-straight day, has gained 3.1 percent this year.
“Guardians” collected $32.6 million in U.S. and Canadian theaters over the extended five-day Thanksgiving weekend, according to Hollywood.com Box-Office, coming in fourth place in its debut. David Miller, a Caris analyst, said the total could force Glendale, California-based DreamWorks Animation to write down its investment in the movie.
Miller downgraded the stock to a below-average rating, the equivalent of sell, from a neutral rating. He also cut his 2013 earnings estimate for the company to 90 cents from $1.15 a share and his price target for the stock to $15 from $20.
“Guardians” ranked behind “The Twilight Saga: Breaking Dawn - Part 2,” “Skyfall” and “Lincoln.”
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