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DREAMWORKS ANIMATION’S STOCK IS DRAGGIN’ OVER DRAGON

June 17, 2014 by · Leave a Comment 

Although How to Train Your Dragon 2 earned slightly more than what the studio on Friday predicted it would, and although many analysts have observed that it faces little competition for the family audience over the next few weeks, shares in DreamWorks Animation plunged 11 percent on Monday and is now down some 15 percent over the past week. Zacks Equity Research commented that the company "has seen a flat track record when it comes to current year estimate revisions over the past few weeks and the consensus for earnings hasn’t been in a trend either." Piper Jaffray analyst James Marsh said that the film came in below the consensus forecast by 30-40 percent, although, he added, it could still reach its $200-million domestic box office target. It could also clean up overseas. It opened over the weekend with just 15 countries with $16 million. In a related development, DreamWorks Animation on Monday launched a family-oriented YouTube video channel featuring both animated and live-action programs. DreamWorks Animation CEO Jeffrey Katzenberg said in a statement, "This is a huge opportunity for the DreamWorks brand."