DreamWorks’ Stock Dips Almost 5% After Soft Holiday Opening for ‘Rise of the Guardians’
‘Rise of the Guardians’
Following the disappointing opening of DreamWorks Animation's $145 million "Rise of the Guardians" over the Thanksgiving weekend, the stock of the company has reportedly dropped almost 5%."Guardians"' $32.6 million is DreamWorks' lowest opening box office haul since 2006's "Flushed Away." That said, animated family fare often pick up steam, especially as the lucrative Christmas holiday looms ahead. And "Guardians" did score the best Cinemascore rating (A) of the week's three new releases, which indicates upbeat word of mouth.
DreamWorks Animation recently moved its distribution deal from Paramount to Twentieth Century Fox, which is counting on a slate of robust DreamWorks Animation hits ahead. The company has scheduled an average three productions a year through 2016, including "The Croods" (March 22, 2013), "Turbo" (July 19, 2013), "Mr. Peabody & Sherman" (November 1, 2013), "Me and My Shadow" (March 14, 2014) and sequels to "How to Train Your Dragon" (June 20, 2014 and June 17, 2016), "Madagascar" (March 27, 2015) and "Kung Fu Panda (March 18, 2016).
As of November 26, the stock is down 4.5%, at $17.24 per share. This is much closer to the company's 52-week low set in January (which was $16.35), than the high reached earlier this month — $22.98.
The company's current market value is $1.5 billion. Meanwhile, analyst Benjamin Mogli reduced his box-office revenue estimate for the film from $145 million to $125 million.
It isn't looking like international box office will give "Guardians" a lift, either. In Russia, the biggest market so far, the film made only $5.85 million during its opening weekend, which is a couple million under the opening numbers of "How to Train Your Dragon" and "Megamind," and not even half of the $14.88 million made by "Puss in Boots."
If the international continues to be as paltry as the domestic, analyst Barton Crockett thinks the film could shift from the $39 million profit initially estimated to a $15 million loss.
By Beth Hanna