Is Dreamworks flushed out?

Keep an eye on the opening box office this weekend for "Flushed Away," the latest offering from DreamWorks Animation that pits rodents against reptiles in the London sewer system (one critic dubbed it a "mouse out of water story"). The Glendale-based animation company just reported better-than-expected third-quarter earnings, but Wall Street has had a tough time getting enthused about the stock. Part of that has to do with the studio's schedule of just two releases a year, which puts enormous pressure on each title. "Flushed Away" received generally good reviews this week, but analysts expect it to score more along the lines of "Madagascar" than a powerhouse like "Shrek." Plus, there have been bombs like "Sinbad" to offset.

A report from Morningstar describes the results as "lumpy," which could mean that the stock peaked out at $29.40 after its third quarter was announced. It closed Friday at $27.60. The wild card, as explained by BW's Alex Halperin, is billionaire Paul Allen, who plans to cash out his interest through a secondary offering. That may sound bearish, but it was Allen's complicated ties to the studio that scared off investors. Even so, Dreamworks still may feel too much like a one-trick ogre.