Maybe DreamWorks Animation should have called it “Rise (and Fall) of the Guardians.”
DWA shares slumped after “Rise of the Guardians” brought in a disappointing $33 million at the domestic box office — far below expectations of at least $50 million.
The lackluster opening raised concerns that the studio would have to take a write-down on the film and led several analysts to trim their profit estimates.
The stock fell 5.2 percent yesterday to close at $17.11.
“Guardians” — about children who stop believing in Santa, the Easter Bunny and the Tooth Fairy — was the company’s third-worst opener ever. Only “Wallace and Gromit” and “Flushed Away” did worse.
The widely panned “Guardians” also failed to meet expectations during a holiday stretch that otherwise saw record-breaking results. Moviegoers spent a record amount over the Thanksgiving holiday, shelling out $290 million in the stretch from Wednesday through Sunday, up from $273 million in 2009.
No doubt “Guardians” struggled with intense competition from the latest installments of the “Twilight” and James Bond.
Tony Wible, a media analyst at Janney Montgomery Scott, told investors “Guardians” was “one of the most disappointing releases in the company history.”
Analysts also warned investors that the movie could result in a write-down in the current quarter if it fails to recoup its $145 million in production costs.
Susquehanna Group media analyst Vasily Karasyov estimated that “Guardians” needs to make at least $230 million overseas to put it in the black.
DreamWorks Animation, run by Jeffrey Katzenberg, has plans beyond its film roots and is exploring involvement in a possible TV network. The studio has also said it will begin making less-expensive movies in the coming years.
DreamWorks Animation declined comment.