×
You will be redirected back to your article in seconds

‘Guardians’ B.O. dents DWA stock

Studio faces write-down unless int'l rescues pic

Wall Street hammered DreamWorks Animation on Monday after a soft opening for “Rise of the Guardians” has some antsy about a writedown unless international can make up the shortfall.

At $33 million for the five-day Thanksgiving break, the pic “opened significantly below consensus and our expectations as well as the closest comparable film in this frame,” wrote Susquehanna Financial analyst Vasily Karasyov in a note early Monday. “We will now be watching international performance, which can pull the title out of writedown territory.”

Shares closed down 5.2% in early trading at $17.11.

Benjamin Mogil from Stifel Nicolaus expects “Guardians” to generate domestic box of $125 million, down from his $145 million estimate. But Karasyov thinks it may reach only $95 million. If so, that would make it the third DWA title since 2001 not to hit the $100 million market after “Wallace and Gromit: The Curse of the Were Rabbit” and “Flushed Away.”

“Guardians” needs international box office of $235 million to avoid a writedown, Karasyov said. And Mogil sees a breakeven as “challenging.”

Mogil noted that a portion of the marketing spend allocated for the winter holidays could be pared down to cut costs. But studio execs are counting on the film’s holiday theme to give it long legs at the box office.

The issue with DWA, Wall Streeters say, is that despite efforts to diversify revenue, film remains the main driver of earnings and stock price.

“We remain hold rated but see the next few weeks’ performance as critical to our ratings views,” Mogil said.

More Film

  • NEW YORK, NY – JUNE, 24:

    LGBTQ Stars Honored at Variety’s Power of Pride Celebration

    New York City felt the full power of pride on Monday, as Variety celebrated its inaugural issue devoted to the annual recognition of LGBTQ people worldwide. At an intimate gathering at lower east side Manhattan hotel The Orchid, rooftop bar Mr. Purple hosted Variety’s cover stars and luminaries for cocktails and the unveiling of the [...]

  • Joel Silver Exits Silver Pictures

    Joel Silver Exits Silver Pictures

    Top Hollywood producer Joel Silver has exited his production company Silver Pictures, Variety has confirmed. “Joel Silver recently indicated that he intends to leave Silver Pictures and go out on his own,” Hal Sadoff, a former ICM Partners agent who joined Silver Pictures several years ago as CEO, said in a statement. “We are working [...]

  • Billy Eichner Power of Pride Variety

    Billy Eichner on Taylor Swift's 'Calm Down' Backlash

    When Taylor Swift released her “You Need to Calm Down” music video, it seemed like every member of the LGBTQ in Hollywood was included — except for Billy Eichner. “I’m still not gay enough for Taylor Swift — or too gay — I don’t know what it is,” Eichner joked at Variety’s Power of Pride [...]

  • Ewen Bremner as Alan McGee in

    Danny Boyle-Produced ‘Creation Stories’ Adds Jason Isaacs, Steven Berkoff

    Jason Isaacs, Steven Berkoff and a host of other new names have signed on for “Creation Stories,” the film being exec-produced by Danny Boyle about Creation Records co-founder Alan McGee. The producers also unveiled the first shots of Ewen Bremner (“Trainspotting”) as the music mogul. Production is underway on the Irvine Welsh-penned project, with “Lock, [...]

  • 'Annabelle Comes Home' Review: This Grab

    Film Review: 'Annabelle Comes Home'

    In a country that should probably think about renaming itself the American Entertainment State, fan culture now produces an obsessive level of pop scholasticism, one that can parse the rules and details of movies and TV shows as if they were fine points of law. In a review of a horror movie, I once called [...]

  • Gugu Mbatha-Raw A Wrinkle in Time

    Racing Green Pictures to Launch With Gugu Mbatha-Raw Historical Drama 'Seacole' (EXCLUSIVE)

    Producer Billy Peterson has formed a new production company, Racing Green Pictures, and announced production on “Seacole,” his first feature with the banner. The film will star Gugu Mbatha-Raw (“Belle”) and Sam Worthington (“Avatar”). It centers on a Mary Seacole, a pioneering Jamaican nurse who cared for wounded British soldiers during the Crimean War and [...]

More From Our Brands

Access exclusive content