Mr Peabody and Sherman

DreamWorks Animation shares have slid sharply after the company took a $57 million impairment charge against earnings due to disappointing box office results for “Mr. Peabody and Sherman.”

Shares were down 8.8% on Wednesday, falling $2.34 to $24.03. It was the lowest trading level of 2014.

After the market closed Tuesday, the company reported a first-quarter loss of $42.9 million — or 51 cents a share — on revenues of $147.2 million. DreamWorks Animation posted earnings of $5.6 million — or 7 cents a share — on revenues of $134.6 million during first quarter of 2013.

Shares declined even though the loss was somewhat less than analysts had expected. The stock had been downgraded Monday by analysts at Bank of America to an “underperform” rating in a research report.

“The box office shortfall of ‘Mr. Peabody and Sherman’ is evidence of the current challenges we face within our feature film segment, and restoring the strength in our core business is my number one priority today,” DreamWorks Animation CEO Jeffrey Katzenberg said on Tuesday.

He predicted a strong showing for “How to Train Your Dragon 2,” opening June 13, but admitted that three of the last four films — “Mr. Peabody,” “Turbo” and “Rise of the Guardians” — have underperformed.

“Mr. Peabody” opened on March 7 through Fox and has grossed $261 million worldwide. Its production cost was $145 million.

Filed Under:

Follow @Variety on Twitter for breaking news, reviews and more
Comments 2