Tuesday, April 15, 2014

Maybe Write Down Time?

The Street isn't sure about the economic health of Mr. Peabody and Sherman.

... Analysts are divided over whether the MPAS will force DreamWorks Animation to take a write-down. Analyst Ben Mogil of Stifel Nicolaus predicted “Peabody” would cost DreamWorks Animation $41 million in a note Monday while Morgan Stanley forecast the company would break-even or take a modest write-down.

DreamWorks Animation will report its quarterly earnings at the end of this month, and Mogil posited, ”the question now becomes whether the company writes the film off with this quarter results, as was the case with “Rise of the Guardians” or waits to see how DVD fares, which was the case with ‘Turbo.'” “Turbo” cost DreamWorks Animation $13.5 million in its most recent quarter.

“Mr. Peabody & Sherman” has already topped “Turbo” in the United States, grossing $105 million to the $83 million “Turbo” made. “Peabody” has lagged overseas, however, grossing $143 million thus far with South Korea the only new market left.

“We estimate that the international box office will be in the $155mn range (was $255mn), triggering a loss of $41mn,” Mogil wrote. ...

I'm guessing that we won't be seeing Mr. Peabody and Sherman 2: When Time Travelers Attack anytime this century.

But I'm betting that, come summer, How to Train Your Dragon II is a major winner for the company.


Alex Dudley said...

It's a shame this means we won't get a TV/Netflix series either.
I always felt MPAS was more suited to that format anyway.

Jeremy Darensbourg said...

Of course Dragon 2 will be a hit this summer. But what about "Home" this Thanksgiving?

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