NEW YORK (TheStreet) -- DreamWorks (DWA) stock is tumbling on Wednesday after the movie studio reported a net loss far wider than analysts expected due to a $57 million writedown for kids' flick Mr. Peabody & Sherman.
In morning trading, shares had dropped 12.4% to $23.10.
Over the three months to March, the company recorded an adjusted net loss of 51 cents a share compared to profits of 7 cents a share in the year-ago quarter. Analysts polled by Thomson Reuters anticipated a net loss of 14 cents a share.
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TheStreet Ratings team rates DREAMWORKS ANIMATION INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DREAMWORKS ANIMATION INC (DWA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
- You can view the full analysis from the report here: DWA Ratings Report