Analyst predicts $96-million write-down on ‘Rise of the Guardians’
DreamWorks Animation may end up losing nearly $100 million on its recent holiday release “Rise of the Guardians.”
That’s the sobering prediction of Lazard Capital Markets analyst Barton Crockett. In a research note on Wednesday, Crockett said he expects the Glendale-based studio will take a $96 million write-down on “Rise of the Guardians,” which has been a rare box office flop for DreamWorks.
‘Rise of the Guardians,’ which cost about $145 million to make, has generated $261 million in global box office ticket sales since its debut in late November, well below that of a typical DreamWorks Animation movie. The movie -- about a group of folk heroes, including the Tooth Fairy and Santa Claus, who join forces to protect children from an evil nemesis -- has yet to open in New Zealand, Poland, Turkey and Japan.
“While bulls want to look past this write-off, the risk is that a second flop like ‘Guardians’ could dramatically change sentiment,” wrote Crockett, who had previously estimated that studio would take a $45-million write-down.
-- Richard Verrier, Los Angeles Times