Krug said:
US$62.6 million. Not bad.
Marvel shares fall after 'Hulk' debut
Film makes $62.6 million, but was expected to do better
By Russ Britt, CBS.MarketWatch.com
Last Update: 4:09 PM ET June 23, 2003
LOS ANGELES (CBS.MW) -- Shares of Marvel Enterprises tumbled more than 11 percent Monday as investors reacted to the weekend box-office debut of "The Hulk."
The movie, based on Marvel's Incredible Hulk comic-book character, set a new record for a June box-office debut, taking in $62.6 million.
But some on Wall Street had expected "The Hulk" to register returns as high as $85 million in its first weekend, following on the heels of two movies also featuring Marvel comic-book characters. "Spider-Man" had a $114.8 million all-time record opening in May 2002, and "X2: X-Men United" took in $85.6 million in its debut last month.
"It had the potential to do as well as 'X2.' It didn't, so it was a slight disappointment," said Arvind Bhatia, an analyst at Southwest Securities. "It's not financial. It's more of a psychological issue."
Marvel (MVL: news, chart, profile) shares fell $2.45, or 11.6 percent, to $18.75.
Vivendi Universal (V: news, chart, profile), which produced "The Hulk," retreated 67 cents, or 3.5 percent, to $18.55, as the Paris-based company accepted bids for all or part of its U.S. entertainment assets. See related story.
Moves in Marvel shares perplexed Chief Executive Allen Lipson, who wasn't aware what was expected for the movie. "I didn't think it was disappointing at all," Lipson said. "It broke a record for June. It's another number one box-office hit for us."
In a note to investors, Bear Stearns analyst Glen Reid said: "Though the company did not provide any sort of guidance on what it thought the opening weekend take could be, the $62.6 million was a little shy of our own slightly more optimistic best guess."
Reid added, however, that Marvel's share of the purse is likely to be no more than $2 million to $5 million, and said the company's returns from merchandising is unlikely to be affected.
Bhatia echoed that sentiment, reiterating his "strong buy" rating on the stock. "We've been telling people to buy on weakness because the fundamentals are unchanged," he said.
"Hulk's" future take may be limited, though. The film, considered an ambitious undertaking by director Ang Lee, lost business between Friday and Saturday.
That's a reversal of what happens with most films, which see a rise in business on their first Saturday of the weekend, said Paul Dergarabedian, president of box-office tracker Exhibitor Relations.
In a summer full of blockbusters, "Hulk's" debut also was the second-worst opening for a No. 1 film so far this season. The worst was "2 Fast 2 Furious," which made $50.5 million its first weekend.
The $120 million film is a darker retelling of the Marvel Comics tale in which a scientist poisoned by radiation transforms into a large green superhuman when angered.
"It's a different type of movie. Ang Lee has a little bit of a different vision," Dergarabedian said.
Officials from Universal could not be reached for comment. Despite concerns about "Hulk's" performance, the studio likely is pleased that its films occupied three of the top four spots over the weekend.
Along with "Hulk, "Furious" was third and "Bruce Almighty" came in fourth, each at roughly $10 million. Walt Disney's (DIS: news, chart, profile) "Finding Nemo" was second at $20.5 million.
Russ Britt is the Los Angeles Bureau Chief for CBS.MarketWatch.com.\
See also:
Marvel Shares Fall Sharply on Disappointing Opening for 'Hulk' Movie
and
Hulk Smashes Marvel
