DreamWorks Animation Stock Tumbles After ‘Mr. Peabody’ Writedown

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.

More Film

  • Palm Springs Shortfest Winners List

    'Fauve' Takes Top Prize at Palm Springs International Shortfest

    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 […]

  • The Closing of Magno, the Quintessential

    The Closing of Magno, the Quintessential New York Screening Room

    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 […]

  • (L to R) Owen (CHRIS PRATT),

    'Jurassic World: Fallen Kingdom' Tops $700 Million Worldwide

    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 […]

  • No Merchandising. Editorial Use Only. No

    'Jurassic World: Fallen Kingdom' Feasts on $150 Million Opening

    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 […]

  • NANTUCKET, MA - JUNE 23: (L-R)

    How Long Will TV and Film's Boom Market for Female Stories Last?

    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 […]

  • 'Ideal Home' Review: Steve Coogan, Paul

    Film Review: 'Ideal Home'

    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 […]

  • 'Calibre' Review: A Terrific, Intensely Terrifying

    Edinburgh Film Review: 'Calibre'

    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 […]

More From Our Brands

Access exclusive content