The stock of DreamWorks Animation SKG Inc. dropped Monday after opening weekend domestic box office receipts for the company’s 3D film "How to Train Your Dragon" came in lower than expected.
The Glendale studio's animated film pulled in $43.3 million, which was still the best performance of any film over the weekend. But Wall Street analysts had expected revenues of $65 million to $70 million.
The take also was well below last year’s "Monsters vs. Aliens," which with far fewer screens made $59.3 million for Dreamworks in its opening weekend last year.
The lower-than-expected performance raised concerns that the public’s appetite for 3-D films – which carry higher ticket prices – has its limits.
"We've all gotten our 3-D fix for the past month with 'Alice in Wonderland' and ‘Avatar' and the novelty factor is no longer as strong," Wedbush Morgan analyst Michael Pachter told Reuters.
Jefferies & Co. analyst Brian Shipman said in an investor’s note that he expected receipts of $64 million, but added that "word of mouth and strong reviews could partially offset the light weekend."
DreamWorks shares closed down $3.47, or 8 percent, to $39.34 on the Nasdaq.
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