DreamWorks Animation SKG fell 4.5 percent after an analyst predicted a writedown of as much as $50 million on the new movie “Turbo,” citing a disappointing opening at the box office.
DreamWorks Animation declined to $23.77 at the close. Shares of the film studio, which fell 6 percent on July 16 as analysts lowered estimates for “Turbo” in its debut, have advanced 43 percent this year.
With sales of $21.5 million this past weekend, “Turbo” may not reach $100 million during its run in US and Canadian theaters, James Marsh, a Piper Jaffray analyst in New York, wrote yesterday in a research note. The film had a slower start than “Rise of the Guardians,” DreamWorks Animation’s November 2012 release that opened with $23.8 million and led to an $87 million writedown.
“While reviews have been positive for the film and could help build word of mouth, at this stage we think it will be lucky to hit $100 million in the current competitive environment,” Marsh wrote.