Dreamworks Animation Shares Fall Again On 'Dragon 2' Box Office

The stock price fell 4.2% to $23.44 today after a second lower-than-expected weekend for How To Train Your Dragon 2, for a 16.2% drop since the Friday before the film opened. Dragon 2 generated $25.3M at domestic box offices, down 49% from its opening weekend, for a total of $95.1M. With this trajectory, the film “will likely miss our 6-week est. of $230M,” Wells Fargo’s Marci Ryvicker says. B. Riley’s Eric Wold cut his domestic forecast by 36% to $175M, and his international by 20% to $400M. As a result, the analyst trimmed his target price for DreamWorks Animation shares from $37 to $32. He cut his revenue estimate for the company’s current fiscal year by 5.5%, and cash flow forecast by 14.8% to $109M. Even so, Wold says that “international trends are too early to call and could surprise to the upside.”

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alycakes1489d ago

I guess they thought that the second one would do as well as the first one and they overspent and over estimated what it would bring in at the box office. The first movie made a ton of money but companies should know by now that they can't gamble on that with all their money.

-Foxtrot1489d ago

They got lucky with the first one but lets be honest it was a one off film. They thought it would be like Shrek were they could keep going with it.

I love animated movies, especially ones Dreamworks do but I could never see the appeal in How to Train Your Dragon.