This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mixed Buzz Circles DreamWorks' Bee Movie

Miller told TheStreet.com in May that Bee Movie would have to do at least $250 million in box-office revenue worldwide in order to keep shares of DreamWorks trading over the $30 mark. Now, he expects the movie to bring in $320 million worldwide and $170 million domestically, but not everyone agrees.

In a note to clients on Monday, Cowen & Co. analyst Doug Creutz called the movie's performance "somewhat disappointing" so far, "despite a ubiquitous marketing campaign" from Seinfeld, who also stars in the movie as the voice of its winged protagonist, Barry B. Benson.

The movie "has continued to underperform at the box office and we now expect the film to earn $130 million in ultimate domestic box office, down from $166 million," said Creutz. "As a result, we do not expect the film to contribute meaningful profits to DreamWorks Animation during its lifetime."

As a result, Creutz reduced his 2007 revenue estimate for the company to $782.9 million from $783.4 million. He also lowered his 2007 earnings per share estimate to $2.18 from $2.19.

Analysts, on average, are expecting DreamWorks to post earnings for the year of $2.19 a share on revenue of $800.1 million.

Meanwhile, Creutz made more dramatic cuts to his 2008 outlook. Next year, he expects the company to report $591 million in revenue and $1.11 a share in earnings. Previously, he was expecting 2008 revenue of $667.3 million and earnings of $1.47 a share.

Analysts' average estimates call for revenue of $727.3 million and earnings of $1.76 a share next year.

Creutz's negative outlook comes at a time when the stock market is buckling under concerns about consumer spending and economic growth amid the downturn of the U.S. housing market. He holds a neutral rating on the stock, noting headwinds for the company such as increased competition in animated movies, a mixed track record on the quality of its releases and a lack of long-term growth catalysts.

"Based on our long-term view, we believe the shares are unlikely to outperform the market over the next 12 months," said Creutz.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs