Dreamworks Animation Skg Inc (NASDAQ:DWA) Shares Tumble

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Dreamworks Animation Skg Inc (NASDAQ:DWA) says Q1 sales were $147.2 million, topping the Thomson Reuters mean for $137.23 million. It lost $0.51 per share, including an impairment charge of $57 million related to the performance of Mr. Peabody & Sherman in the worldwide theatrical market. Estimates, usually less items, were for a loss of $0.14.

In a note to investors earlier today, Janney Capital analyst Tony Wible wrote that two of DreamWorks upcoming films, “Penguins” and “Dragon 2,” will be hits that will help it sustain its average performance. Early tracking data on Dragon is “very encouraging,” and the Peabody charge was expected and does not significantly change the outlook for the company’s results, added Wible, who kept a Buy rating on the stock.

Meanwhile, research firm B. Riley wrote that investors had anticipated that the company would take a charge on Peabody since the movie’s release. Now that the charge has been taken, investors can focus on the more “franchise friendly” films the company is set to release over the next few years, starting with Dragon 2. The firm kept a $37 price target and Buy rating on the shares.

Analysts have a consensus price target of $27 on Dreamworks Animation Skg Inc (NASDAQ:DWA) which indicates a 3.74% upside. The consensus rating of the stock is a Hold with a score of 1.78. There are currently 3 Buy ratings on the stock, 5 Sell ratings and 1 hold rating.

A recent analyst action consisted of Bank of America downgrading the stock from Neutral to Underperform, dropping their price target from $33 to $22 on April 28th.

 

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