Film's box-office-leading $47.7M opening is about $10M short of what Wall Street was expecting; stock drop is not as bad as earlier declines following “How to Train Your Dragon” and “Shrek 4″
Here we go again.
While it was good enough to lead the domestic box office, the $47.7 million opening over the weekend for DreamWorks Animation's latest 3D film, "Megamind," did not impress Wall Street.
With analysts expecting the film to open to about $10 million more, DreamWorks stock slipped slightly over 2 percent Monday, trading just under $34 a share at the time this article was posted.
Speaking to the Associated Press, Wedbush Morgan said he expected "Megamind" to open at around $55 million, noting that it had more 3D exhibition than any previous DWA release, playing at 2,634 3D-equipped locations.
Wunderlich Securities analyst Matthew Harrigan told the wire service the opening was a "touch light," noting it was $10 million less than what he anticipated. He added that he expects the film to have "strong legs," despite the fact that it loses its 195 IMAX screens when Warner debuts its next "Harry Potter" movie Nov. 19.
That's just the way it's been going for DreamWorks, which has watched its stock drop on the Monday following its previous two openings this year, despite the fact that both films ultimately proved very successful.
On March 30, DreamWorks Animation stock slipped 8 percent after "How to Train Your Dragon" debuted to $43.7 million. The film went on to gross $493.2 million worldwide and spawn a sequel.
And on May 24, DreamWorks stock tumbled 11 percent after "Shrek Forever After" opened to a disappointing $70.8 million. That film went on to gross $737.4 million globally, driven by a huge $499 million foreign performance.
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