Monday, September 23, 2019

“OGRE SATURATION” HITS DREAMWORKS ANIMATION’S SHARES

June 17, 2010 by · Leave a Comment 

Shares of DreamWorks Animation dropped 5 percent in midday trading today (Thursday) to $26.91 after two analysts downgraded the stock and criticized the studio for rushing out two Shrek movies close together. Goldman Sachs analyst Ingrid Chung called it “ogre-saturation” and lowered her estimates for Shrek Forever After to $250 million in its domestic run and $375 million overseas, down from $325 million and $600 million, respectively. Janney Montgomery Scott analyst Tony Wible said that the company’s stock, which has fallen from a 52-week high of $44.77 “largely reflects the disappointments,” but, he added, things are likely to grow worse. “We contend that growth may be more challenged than some expect,” he concluded.