DreamWorks Animation said Tuesday it will take an $87 million charge for the poor performance of Rise of the Guardians, a film with a $145 million production budget that scored just $302 million worldwide since opening in November. It will also take a charge of $54 million for returning Me & My Shadow to development.
The studio also reported losing 98 cents per share in the most recent quarter on revenue of $265 million.
Analysts had expected the company to lose about 3 cents per share in the quarter, reversing a 29-cents-per-share profit a year ago. Revenue was expected to sink to $213 million from $219 million in the same quarter a year earlier.
Last year's pair of Madagascar 3 and Rise of the Guardians did not come close to matching the financial results of Kung Fu Panda 2 and Puss in Boots in 2011.
DreamWorks Animation has been going through a rough patch, and analysts are expected to hit CEO Jeffrey Katzenberg with some penetrating questions when he speaks to them on a conference call later today.
The company said three weeks ago it was delaying the release of Mr. Peabody & Sherman by four months and that Me & My Shadow has been yanked from the schedule indefinitely. Sources also say DreamWorks Animation could lay off up to 400 people at its Glendale-based studio.
Shares of DreamWorks Animation have declined 6 percent in the past three weeks.
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