Analyst: DreamWorks Animation Films 'Simply Not Earning money with Anywhere Near Historic Norms'

NY - Shares of DreamWorks Animation opened up up slightly lower on Wednesday after BTIG analyst Richard Greenfield cut his cost target round the stock and also the 2012 earnings estimations, stating lower anticipation for Puss in Boots, among other activities. He reduced his cost target from $18 to $15.50 and maintained his "sell" rating round the stock. "DWA's key challenge is always that their creative output (movies) just is not earning money with anywhere near historic norms," Greenfield written in the report."As the introduction of worldwide areas (especially Russia and China) and 3d ticket rates have aided DWA box office grosses, the rapid decline in your house entertainment market as clients vary from buying to leasing is much outweighing el born area office benefits." Meanwhile, DWA's films have fallen short inside the U.S., "with box office outperformance largely occurring in areas where ancillary revenue streams are a smaller amount robust in comparison towards the U.S.," Greenfield mentioned. He mentioned his reduction in his 2012 earnings estimate to $1.25 per share from $1.54 was "driven by lower box office presumptions for Puss in Boots (3d and Imax 3d rates progressively hard for clients to warrant for animated films) and reduced ancillary revenues for Puss in Boots and Madagascar 3." At 10:40am ET, DWA shares exchanged at $18.74, lower 1.9 %. Within the this past year, the stock has exchanged between $16.50 and $37.74. Email: Georg.Szalai@thr.com Twitter: @georgszalai Related Subjects DreamWorks Animation Madagascar 3 Puss in Boots