DreamWorks Animation stock slid sharply following a $57 million impairment charge against earnings taken by the company, according to a report by Variety. The writedown, announced Tuesday, was due to disappointing box office results for Mr. Peabody and Sherman.
Opening March 7 via distributor Fox, Mr. Peabody has grossed $261 million worldwide. The film cost $145 million to produce.
Shares were down 8.8% on Wednesday, falling $2.34 to $24.03. It was the lowest trading level of 2014. Shares declined even though the loss was reportedly somewhat less than analysts had expected.
“The box office shortfall of Mr. Peabody and Sherman is evidence of the current challenges we face within our feature film segment, and restoring the strength in our core business is my number one priority today,” DreamWorks Animation CEO Jeffrey Katzenberg said on Tuesday.
He predicted a strong showing for How to Train Your Dragon 2, opening June 13, but admitted that three of the last four films -- Mr. Peabody, Turbo and Rise of the Guardians -- have underperformed.