DreamWorks Animation sinks after postponing film release

theflyonthewall.com

Shares of DreamWorks Animation (DWA) are falling after the company announced last night that it would delay the U.S. release of its film, Mr. Peabody & Sherman, until March 7, 2014. The film had previously been scheduled to be released on November 1, 2013. The company said that it made the decision based on advice from the film's distributor, News Corp's (NWSA) Twentieth Century Fox. Meanwhile, additional work will be performed on another film, Me & My Shadow, which was scheduled to be released in March 2014, DreamWorks added. Piper Jaffray analyst James Marsh responded to the news by downgrading DreamWorks' stock to Neutral from Overweight. The delay in the release of Mr. Peabody & Sherman leaves the company with only two films this year rather than three as previously planned, and will highlight the weaker than expected performance of another DreamWorks film, The Croods, wrote Marsh. The analyst placed an $18 price target on the shares, which fell $1, or 6%, to $16.41 in mid-morning trading.

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