DreamWorks Cancels Stock Offering, Lowers Profit Estimates
DreamWorks Animation SKG has cancelled a secondary stock offering and lowered its earnings estimates, the company said today.
The studio now expects to lose between seven and nine cents a share during the second quarter of 2005, and it lowered its annual earnings expectations to between eighty and ninety cents a share. The company has been hurt by unanticipated returns of unsold DVDs.
In premarket activity, DreamWorks shares fell more than 10 percent to $23.66, leaving the stock down 16 percent since it was originally offered in October.
The company cites the stock’s recent lackluster performance as the reason for canceling a planned secondary offering of $500 million of Class A common stock.
The company also says it is cooperating with an informal Securities and Exchange Commission inquiry into trading in its stock.
[Sources: PR Newswire; Associated Press]