Wedbush Maintains a 'Neutral' on DreamWorks Animation (DWA); Lowering Estimates and Price Target
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Price: $40.97 --0%
Rating Summary:
3 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush maintains a 'Neutral' on DreamWorks Animation (NASDAQ: DWA), PT lowered from $29 to $20.50.
Wedbush analyst says, "Lowering our FY:11 and FY:12 estimates due to Kung Fu Panda 2 weakness. For FY:11, we are lowering our estimates for revenue to $770 million from $830 million and for EPS to $1.62 from $1.96. For FY:12, we are lowering our estimates for revenue to $675 million from $724 million and for EPS to $1.71 from $2.00. DreamWorks is heavily dependent upon the theatrical success of its films in order to meet expectations, and its recent mediocre results suggest similar results going forward."
"We expect DreamWorks to struggle to generate significant long-term growth
due to sluggish box office performance, declining DVD sales, and a limited
number of releases. In early March, the company announced a revised release
slate through 2014, with two titles shifting by a year compared to expectations (The Croods to 2013 from 2012, and How to Train Your Dragon 2 to 2014 from 2013). The company plans two movies in 2011 and 2012, and three movies in 2013, partly as a result of the collective underperformance of its three movies in 2011."
For more ratings news on DreamWorks Animation click here and for the rating history of DreamWorks Animation click here.
Shares of DreamWorks Animation closed at $20.76 yesterday.
Wedbush analyst says, "Lowering our FY:11 and FY:12 estimates due to Kung Fu Panda 2 weakness. For FY:11, we are lowering our estimates for revenue to $770 million from $830 million and for EPS to $1.62 from $1.96. For FY:12, we are lowering our estimates for revenue to $675 million from $724 million and for EPS to $1.71 from $2.00. DreamWorks is heavily dependent upon the theatrical success of its films in order to meet expectations, and its recent mediocre results suggest similar results going forward."
"We expect DreamWorks to struggle to generate significant long-term growth
due to sluggish box office performance, declining DVD sales, and a limited
number of releases. In early March, the company announced a revised release
slate through 2014, with two titles shifting by a year compared to expectations (The Croods to 2013 from 2012, and How to Train Your Dragon 2 to 2014 from 2013). The company plans two movies in 2011 and 2012, and three movies in 2013, partly as a result of the collective underperformance of its three movies in 2011."
For more ratings news on DreamWorks Animation click here and for the rating history of DreamWorks Animation click here.
Shares of DreamWorks Animation closed at $20.76 yesterday.
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